Neuberger Berman expanded its active equity ETF lineup on Thursday, December 18. The Neuberger Berman Growth ETF launched on the New York Stock Exchange, bringing active management to large-cap growth investing.
“Demand for actively managed equity ETFs by advisors has never been stronger,” said Todd Rosenbluth, head of research at VettaFi. “The addition to Neuberger Bergman’s growing ETF lineup is exciting to see.”
NGBX seeks long-term capital growth through its investments in large-cap companies. The management team of the fund brings an average of over 25 years of experience to bear. They seek to capture large-cap growth stocks demonstrating innovation while focusing on quality. By using both quantitative and qualitative analysis, the fund seeks companies that demonstrate elevated earnings, appealing sales growth, or returns that compete within their peer groups.
Specific factors the managers take into consideration include profit margins, balance sheet health, a company’s market share, cash flows, and earnings growth. The strategy also takes into account how these companies measure up and remain competitive within their industries.
The fund invests across sectors and industries, seeking to minimize concentration and associated risks. However, its portfolio may be more concentrated at times. This depends on perceived beneficial economic or market trends for an industry or sector. When selling securities, the managers adhere to a disciplined process that considers macroeconomic factors and/or factors that apply specifically to a security.
NBGX invests primarily in domestic stocks but can invest in foreign stocks. It also may buy or sell options in seeking to increase return potential. When call writing, the fund only deals in covered calls, meaning it owns the underlying asset when writing the call.
At launch, the top sectors by weight for the fund include information technology at 43.61%, consumer discretionary at 16.07%, and communication services at 13.88%.
NGBX carries an expense ratio of 0.44% with fee waivers that expire 08/31/26.
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