Neuberger Berman has expanded its lineup with an active core equity ETF.
The Neuberger Berman Core Equity ETF (NBCR) serves as an alternative to passive U.S. large cap strategies. The fund seeks to outperform the Russell 1000 Index with a lower level of risk through security selection.
The fund’s launch comes at a time of high demand for active strategies. Active ETFs saw record flows during the first half of 2024, bringing in over $120 billion in net flows during the first two quarters of the year.
“Nearly a third of all net cash has gone into active strategies this year, and it’s great to see Neuberger Berman broaden out their focus with this exciting core equity launch,” Kirsten Chang, VettaFi senior industry analyst, said. “The new product rounds out the assortment of targeted active thematic ETFs already in the company’s wheelhouse.”
Under the Hood of Neuberger Berman’s Active Core Equity ETF
The new active core equity ETF will have sector exposures similar to the Russell 1000. Portfolio selection will be done using a fundamental, research-driven approach.
The research analysts analyze and rate stocks within an industry by conducting equity research. This may include company visits, management interviews, industry conferences, proprietary modeling of earnings, cash flow and balance sheets, projecting growth and valuation changes, and setting price targets for companies under coverage, according to regulatory filings.
In selecting securities for the fund, the portfolio managers utilize the analysis and ratings provided by the research analysts.
The fund, listed on the NYSE on August 1, charges 88 basis points.
Neuberger Berman has quickly expanded its ETF presence in 2024. The firm has this year launched the Neuberger Berman Short Duration Income ETF (NBSD ), the Neuberger Berman Flexible Credit Income ETF (NBFC ), and the Neuberger Berman Option Strategy ETF (NBOS), to name a few.
For more news, information, and analysis, visit the Invest Beyond Cash Channel.
