The Neuberger Berman Growth ETF (NBGX) seeks to provide long-term capital appreciation by investing in U.S. companies exhibiting above-average growth characteristics. This actively managed growth equity ETF targets companies with strong earnings growth potential, expanding market opportunities, and innovative business models across all market capitalizations.
How It Works
NBGX employs an active management approach where Neuberger Berman's portfolio managers conduct fundamental research to identify growth companies with sustainable competitive advantages and strong earnings momentum. The fund typically holds 40-80 concentrated positions, with higher allocations to companies showing the strongest growth metrics including revenue acceleration, margin expansion, and market share gains. Portfolio rebalancing occurs continuously based on changing growth prospects and valuation opportunities.
Key Features
- Actively managed by experienced Neuberger Berman growth specialists with decades of track record in identifying emerging growth opportunities
- Concentrated portfolio approach allows for meaningful position sizes in highest-conviction growth ideas versus broad diversification
- Recently launched with 0.00% expense ratio, though this promotional rate will likely increase after initial period
Risks
- This ETF can lose value significantly during growth stock selloffs, potentially declining 40-50% when investors rotate from growth to value stocks
- Concentrated holdings mean individual stock disappointments can materially impact performance, with top 10 positions likely representing 40%+ of assets
- Active management risk exists as portfolio managers' stock selection may underperform passive growth indices during extended periods
Who Should Own This
Best suited for aggressive growth investors with 5+ year time horizons and high risk tolerance who seek active management expertise. Appropriate as a satellite holding representing 10-25% of equity allocation for investors comfortable with concentrated positions and higher volatility in exchange for potential outperformance.