Launched on 12/13/2016, the Nuveen ESG Large-Cap Value ETF (NULV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $2.09 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. NULV is managed by Nuveen. NULV seeks to match the performance of the TIAA ESG USA Large-Cap Value Index before fees and expenses.
The Nuveen ESG USA Large-Cap Value Index composes of equity securities issued by large capitalization companies listed on U.S. exchanges.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.26%, making it on par with most peer products in the space.
NULV's 12-month trailing dividend yield is 1.48%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 21.2% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Telecom round out the top three.
When you look at individual holdings, Alphabet Inc - Class A (GOOGL) accounts for about 7.01% of the fund's total assets, followed by Coca Cola Co. (KO) and Intel Corp (INTC).
Its top 10 holdings account for approximately 24.64% of NULV's total assets under management.
Performance and Risk
The ETF has added roughly 10.72% and is up about 22.65% so far this year and in the past one year (as of 06/26/2026), respectively. NULV has traded between $41.50 and $51.30 during this last 52-week period.
The ETF has a beta of 0.85 and standard deviation of 12.30% for the trailing three-year period. With about 111 holdings, it effectively diversifies company-specific risk .
Alternatives
Nuveen ESG Large-Cap Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF Shares (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF Shares has $12.87 billion in assets, iShares ESG Aware MSCI USA ETF has $17.11 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
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Nuveen ESG Large-Cap Value ETF (NULV): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).