New York-headquartered Neuberger Berman, a private investment manager with more than $450 billion in assets, has introduced its first ETFs.
Private investment manager Neuberger Berman has made its ETF debut with three active thematic strategies.
The firm’s debut offering includes three actively managed thematic strategies targeting global stocks aligned with the themes of disruptive technologies, digitally connected consumers, and carbon transition infrastructure.
The Neuberger Berman Disrupters ETF (NBDS US), Neuberger Berman Connected Consumer ETF (NBCC US), and Neuberger Berman Carbon Transition & Infrastructure ETF (NBCT US) have been listed on NYSE Arca with expense ratios of 0.55% each.
The ETFs are an extension of Neuberger Berman’s thematic investment capabilities which harness alternative data capabilities such as machine learning to home in on individual themes.
Neuberger Berman’s portfolio managers then utilize traditional fundamental equity research, including consideration of ESG factors, to select firms demonstrating industry leadership and favourable growth at a reasonable price (GARP) characteristics.
Hari Ramanan, CIO of Global Research Strategies at Neuberger Berman, commented: “Thematic strategies aim to identify and invest in long-term economic shifts and require an extremely rigorous, research-based approach.
“We are bringing together the data science, local market expertise, active management, and the corporate engagement tools that Neuberger Berman has cultivated in order to develop what we view as the best-in-breed thematic offerings in a widely available ETF structure with the potential for tax efficiency.”
The ETFs
The Neuberger Berman Disrupters ETF invests in a high-conviction portfolio of approximately 30 companies that are creating new markets or disrupting old paradigms. Target sub-themes include autonomous driving, cloud computing, gene therapy, artificial intelligence, virtual reality, minimally-invasive therapies, and liquid biopsies, among others.
The Neuberger Berman Connected Consumer ETF targets companies poised to benefit from the growing economic power of Generation Y and Z populations. Neuberger Berman evaluates the web search and spending tendencies of millions of online consumers to identify products that appear best positioned for mass adoption in the digital age.
The Neuberger Berman Carbon Transition & Infrastructure ETF invests in companies that dedicate at least 20% of their assets or derive at least 20% of their revenue from infrastructure facilitating global decarbonization efforts. Eligible sub-themes include renewable energy, smart grids, electric vehicle charging stations, and carbon removal technologies.