The Neuberger Berman Core Equity ETF (NBCR) seeks to provide long-term capital appreciation through active management of a diversified portfolio of U.S. equity securities. This actively managed core equity ETF focuses on companies across all market capitalizations, emphasizing fundamental analysis to identify undervalued stocks with strong growth potential.
How It Works
NBCR employs an active management approach using Neuberger Berman's fundamental research capabilities to select individual stocks based on quality, valuation, and growth characteristics. The portfolio managers conduct bottom-up security selection, focusing on companies with sustainable competitive advantages, strong management teams, and attractive risk-adjusted return potential. The fund maintains flexibility to invest across market capitalizations and sectors, with portfolio construction driven by conviction rather than benchmark constraints. Rebalancing occurs as opportunities arise based on fundamental analysis.
Key Features
- Actively managed by experienced Neuberger Berman portfolio managers with decades of equity investment expertise and proven track record
- Zero expense ratio structure makes it cost-competitive with passive index funds while providing active management benefits
- Newly launched in August 2024, offering fresh approach to core equity investing without legacy constraints or style drift
Risks
- This ETF can lose value if the portfolio managers' stock selection underperforms the broader market, as active decisions may prove incorrect
- Manager risk exists since performance depends heavily on the investment team's continued tenure and decision-making effectiveness at Neuberger Berman
- Equity market volatility could cause 20-40% declines during bear markets, with active management potentially amplifying or reducing these swings
Who Should Own This
Best suited as a core holding (30-60% of equity allocation) for investors with 5+ year time horizons seeking active management at passive fund costs. Medium to high risk tolerance required due to equity volatility and active management decisions. Appropriate for investors who believe skilled managers can add value over index investing.