In another record-breaking year for ETF launches, the Neuberger Berman Small-Mid Cap ETF (NBSM ) continues to capture investor attention. Through its actively managed strategy in the SMIDcap space, the fund garners a top spot in best new ETFs of the year according to Morningstar.
Active ETFs dominated fund launches this year. Over three-quarters of all new ETFs in 2024 operate under some type of active strategy. As more institutional strategies make their way into the ETF wrapper, investors now enjoy a vast array of choices when selecting an ETF.
“This year’s best new ETFs target different markets, but each leverages a strategy over 30 years in the making,” Morningstar explained in a roundup of top and bottom ETFs of the year. “A long track record should give investors confidence in these new ETFs.”
Of the new ETFs launched this year, NBSM stood out as a top offering for investors. The fund focuses on quality companies within the small- and midcap space. It brings over the separately managed account approach of the Neuberger Berman Genesis Fund and makes it readily available in the tax-efficient ETF wrapper.
NBSM Brings Institutional Strategy to ETF Investors
The actively managed NBSM invests in small- and midcap companies with elevated, sustainable growth potential.
The fund managers use bottom-up analysis when evaluating companies. The strategy focuses on quality companies that generate reliable free cash flow and elevated profitability. The companies also have conservative balance sheets and business models that set them apart from peers. The overall approach to SMIDcap investing results in a diversified portfolio compared to benchmarks.
The strategy also seeks to mitigate the elevated volatility inherent in small- and midcap investing while reducing downside risk. The strategy offers the potential of a smoother ride for investors within this more volatile equity asset class.
NBSM carries an expense ratio of 0.74%.
For more news, information, and analysis, visit the Invest Beyond Cash Channel.
