Neuberger Berman Enters The ETF Market

The firm has brought to market three actively managed thematic ETFs.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Investment manager Neuberger Berman, which has approximately $460 billion in assets under management, made its ETF debut today with the launch of three actively managed thematic funds. The new products and their expense ratios are as follows:

  • Neuberger Berman Carbon Transition & Infrastructure ETF (NBCT)
  • Neuberger Berman Disrupters ETF (NBDS)
  • Neuberger Berman Next Generation Connected Consumer ETF (NBCC)

Each comes with an expense ratio of 0.55% and lists on the NYSE Arca.

All three rely on fundamental analysis and incorporate ESG criteria into their selection processes and choose their holdings from a global universe. Stocks are chosen for their respective portfolios based on their valuations, potential for growth and industry leadership, the prospectus says.

The Funds

NBCT invests in a combination of different types of infrastructure companies and companies that have dedicated at least 20% of their assets or revenue associated with infrastructure that contributes to decarbonization or the overall reduction of greenhouse gases. The fund generally seeks to avoid companies with significant involvement in fossil fuels, according to the document.

Meanwhile, NBDS focuses on the concept of disruptive innovation, targeting companies that are either disrupting their respective markets, focusing on areas like autonomous driving, cloud computing, gene therapy, artificial intelligence, virtual reality, minimally invasive therapies and liquid biopsies, the prospectus notes.

Finally, NBCC looks to capitalize on companies benefiting from the spending power of Generations Y and Z, or the “NextGen Consumer.” The fund chooses from securities operating in a range of industries including 5G mobile services, cloud computing, social media and food delivery, the document says.

 

Contact Heather Bell at [email protected]

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.