NSCS Profile
The Nuveen Small Cap Select ETF is designed to offer investors exposure to small-capitalization companies through a focused investment strategy. Under normal market conditions, the fund commits at least 80% of its net assets to exchange-traded common stocks of U.S. small-cap companies. These companies are typically characterized by their market capitalization, which falls within the lower range compared to larger, more established firms. The fund aims to capture the growth potential inherent in smaller companies, which often exhibit higher growth rates and greater potential for capital appreciation compared to their larger counterparts.
In addition to its primary focus on U.S. small-cap stocks, the fund has the flexibility to invest up to 25% of its total assets in foreign common stocks and dollar-denominated equity securities of non-U.S. issuers. These international investments can be listed on U.S. stock exchanges or represented by American Depositary Receipts (ADRs) issued by U.S. financial institutions. This allows the fund to diversify its holdings beyond domestic markets while maintaining a core emphasis on small-cap companies.
The fund also has the option to allocate up to 15% of its total assets to securities of emerging market issuers. Emerging markets are often associated with higher growth potential but also come with increased risk and volatility. By including these securities, the fund seeks to enhance its growth opportunities and diversify its investment base across a broader range of markets and economic environments.
Overall, the Nuveen Small Cap Select ETF offers a targeted investment approach with a significant focus on U.S. small-cap stocks, supplemented by international and emerging market exposures. This strategy aims to capitalize on the dynamic growth potential of smaller companies while managing risk through geographic and sectoral diversification.
|
