On Thursday, Neuberger Berman launched its next ETF, the Neuberger Berman Japan Equity ETF (NBJP).
For investors, NBJP’s goal is to provide capital growth over the long term. The fund currently has a net expense ratio of 0.50%.
An international-focused fund, NBJP primarily invests assets in securities economically tied to Japan. This can include both Japan-tied equity securities and investment companies that provide investment exposure to Japan-tied securities.
NBJP’s portfolio can include securities all across the cap spectrum. The fund may also hold exposure in any sector.
Quality-Driven Selection Process
To choose Japanese investments, Neuberger Berman focuses on quality and durable growth prospects. The fund uses a research-driven, bottom-up, fundamental process to find assets that fit the bill. This approach keeps a long-term investment view, and mixes qualitative scrutiny with quantitative analysis.
A three-step process is used to locate securities that may be beneficial to the fund. First, NBJP will screen for valuable quantitative factors, including both earnings and return on equity.
Along with quantitative scrutiny, the fund will also examine the qualitative value of a company. These qualitative measures can include brand or product strength, management expertise, and greater industry trends.
After qualitative and quantitative factors have been considered, Neuberger Berman then assesses the valuations for each company. By doing so, the fund seeks to cultivate a portfolio of durable companies purchased at attractive valuations.
As an additional metric, NBJP’s portfolio managers keep ESG factors under consideration. While the fund does not specifically seek a “sustainable” investment strategy, the portfolio managers believe some ESG factors can aid the fund’s investment process.
“Neuberger Berman has been expanding its ETF presence by leveraging active management expertise,” added Todd Rosenbluth, Head of Research at VettaFi.” Many U.S. investors have a home bias so it is great to see the focus on a developed international market.”
Currently, Neuberger Berman has more than ten ETFs listed in the United States. These funds, in total, account for over $1.3 billion in assets under management.
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