Neuberger Berman Energy Transition & Infrastructure ETF (NBET) seeks to provide exposure to companies involved in the global energy transition and infrastructure development. This actively managed ETF focuses on firms benefiting from the shift toward renewable energy, energy storage, grid modernization, and critical infrastructure supporting decarbonization efforts.
How It Works
NBET employs an active management approach, with portfolio managers selecting companies across the energy transition value chain including renewable energy producers, battery technology firms, electric vehicle infrastructure, and traditional energy companies adapting to cleaner technologies. The fund maintains geographic diversification across developed and emerging markets, with position sizing based on fundamental analysis rather than market capitalization weighting. Holdings are continuously monitored and rebalanced based on changing market conditions and transition opportunities.
Key Features
- Active management allows tactical positioning across rapidly evolving energy transition themes and emerging technologies
- Attractive 4.70% dividend yield provides income while participating in long-term energy transformation trends
- Recently launched in 2022, offering exposure to current energy transition opportunities with modern portfolio construction
Risks
- This ETF can lose value if energy transition policies face political opposition or regulatory rollbacks, potentially declining 20-30% during policy uncertainty periods
- Technology and infrastructure stocks are volatile, with individual holdings potentially dropping 40-50% if projects fail or face financing difficulties
- Active management risk means underperformance versus passive alternatives if stock selection proves incorrect during market transitions
Who Should Own This
Best suited as a satellite holding (5-15% of portfolio) for investors with 3-7 year time horizons seeking thematic exposure to energy transition trends. Requires medium-to-high risk tolerance due to sector concentration and active management volatility. Appropriate for investors wanting income generation while participating in long-term decarbonization themes.