Is Nuveen ESG Large-Cap Growth ETF (NULG) a Strong ETF Right Now?

Launched on 12/13/2016, the Nuveen ESG Large-Cap Growth ETF (NULG) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Nuveen, and has been able to amass over $1.66 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Growth. Before fees and expenses, NULG seeks to match the performance of the TIAA ESG USA Large-Cap Growth Index.

The Nuveen ESG USA Large-Cap Growth Index composes of equity securities issued by large capitalization companies listed on U.S. exchanges.

Cost & Other Expenses

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Operating expenses on an annual basis are 0.26% for NULG, making it on par with most peer products in the space.

NULG's 12-month trailing dividend yield is 0.14%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector - about 48.9% of the portfolio. Consumer Discretionary and Telecom round out the top three.

Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 13.14% of the fund's total assets, followed by Broadcom Inc (AVGO) and Alphabet Inc (GOOG).

Story ContinuesThe top 10 holdings account for about 42.74% of total assets under management.

Performance and Risk

The ETF has gained about 10.41% so far this year and it's up approximately 13.47% in the last one year (as of 07/17/2025). In the past 52-week period, it has traded between $70.54 and $94.78

NULG has a beta of 1.18 and standard deviation of 20.87% for the trailing three-year period. With about 80 holdings, it effectively diversifies company-specific risk .

Alternatives

Nuveen ESG Large-Cap Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.

Vanguard ESG U.S. Stock ETF (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 has $10.76 billion in assets, iShares ESG Aware MSCI USA ETF has $13.83 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 Growth

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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Nuveen ESG Large-Cap Growth ETF (NULG): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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