Thematic ETFs have become a popular way to position portfolios for technological disruption, demographic changes, and shifting consumer behaviors. At the same time, actively-managed ETFs have experienced a renaissance as investors seek out better ways to navigate the market volatility using fundamental analysis and other strategies.
Neuberger Berman aims to capitalize on both of these trends with the launch of its first-ever actively-managed ETFs. The funds will invest in three distinct thematic megatrends – technology disruption, digitally-connected consumers, and infrastructure-enabled decarbonization – using fundamental equity research, alternative data capabilities, and ESG factors.
Let’s take a closer look at the funds, and see if they might be the right fit for your portfolio.
See our Active ETFs Channel to learn more about this investment vehicle and its suitability for your portfolio.
Neuberger Berman Connected Consumer ETF (NBCC)
The Neuberger Berman Connected Consumer ETF (NBCC) provides exposure to companies serving Generation’s Y and Z. By 2050, these groups will consist of 4.5 billion people representing 81% of global disposable income, making it a critically important market for investors to address over the coming years.
| Total Assets | $4.8 Million |
|---|---|
| Expense Ratio | 0.55% |
Fund managers Kevin McCarthy, John San Marco, Kai Cui, Timothy Creedon and Hari Ramanan will leverage cutting-edge data science techniques to evaluate the web search and spending tendencies of millions of consumers, along with the call transactions and filings for over 4,000 public companies to identify emerging opportunities.
Neuberger Berman Carbon Transit & Infrastructure ETF (NBCT)
The Neuberger Berman Carbon Transit & Infrastructure ETF (NBCT) provides exposure to companies either in or focused on low-carbon resources, electrification or carbon reduction solutions. With half of the global electricity projected to be renewable by 2050, there’s a $50 trillion investment opportunity in developing tomorrow’s infrastructure solutions.
| Total Assets | $5.1 Million |
|---|---|
| Expense Ratio | 0.55% |
Fund managers Ronald Silvestri, Jared Mann, James Tyre, Timothy Creedon and Hari Ramanan will focus on investing in renewable energy producers, electric vehicle charging solutions, smart grid companies and issues that facilitate the carbon reduction goals of infrastructure owners, using fundamental equity analysis.
Neuberger Berman Disrupters ETF (NBDS)
The Neuberger Berman Disrupters ETF (NBDS) provides exposure to companies pursuing disruptive growth agendas. Like Cathy Woods’ ARK ETFs, the actively-managed fund aims to invest in high-growth opportunities across market capitalizations and sectors, although it plans to take a scientific and data-driven approach to the process.
| Total Assets | $4.6 Million |
|---|---|
| Expense Ratio | 0.55% |
Fund managers Rick Bradt and Json Tauber will use machine learning, language processing and cloud-computing techniques to analyze six terabytes of data daily, including SKU-level transactions, search data, and conference call transcripts to build a portfolio of about 30 companies across sectors and market capitalizations.
The Bottom Line
Neuberger Berman’s new actively-managed thematic ETFs offer a high-tech way to invest in megatrends that could define the next couple of decades. While the funds are still new, Neuberger Berman has been around since 1939, and the funds take a refreshing data-driven approach that many other thematic ETFs lack in the space.
Take a look at our recently launched Model Portfolios to see how you can rebalance your portfolio.
Data as of May 5, 2022.
