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NBCE ETF — Holdings & Analysis

The Neuberger Berman China Equity ETF (NBCE) is a concentrated equity ETF with $0.01 billion in assets under management. Launched in October 2023, NBCE focuses on high-quality, onshore China A-Share companies, aiming to align with the values of many U.S.

investors. With an expense ratio of 7.22%, NBCE offers exposure to the Chinese equity market through a portfolio of 65 holdings, emphasizing companies broadly consistent with U.S. investor values.

Neuberger Berman China Equity ETF (NBCE) ETF — Price, Holdings & Analysis

The Neuberger Berman China Equity ETF (NBCE) is a concentrated equity ETF with $0.01 billion in assets under management. Launched in October 2023, NBCE focuses on high-quality, onshore China A-Share companies, aiming to align with the values of many U.S. investors. With an expense ratio of 7.22%, NBCE offers exposure to the Chinese equity market through a portfolio of 65 holdings, emphasizing companies broadly consistent with U.S. investor values.

ETF Overview

Concentrated, all-cap portfolio focused on high quality, onshore China A-Share companies, which seeks to invest in a manner broadly consistent with the values of many U.S. investors
The Neuberger Berman China Equity ETF (NBCE) provides concentrated exposure to the Chinese equity market, specifically targeting onshore China A-Share companies. The fund seeks to invest in companies deemed high-quality and broadly consistent with the values of many U.S. investors. NBCE's portfolio consists of 65 holdings, reflecting a focused approach within the Chinese market. The ETF's top holdings include Contemporary Amperex Technology Co Ltd Class A (3.52%), China Merchants Bank Co Ltd Class A (3.29%), and Montage Technology Co Ltd Class A (3.07%). Sector allocation is heavily weighted towards Technology (25.3%), Industrials (17.3%), and Financial Services (16.5%). This ETF may appeal to investors seeking targeted exposure to Chinese equities with a specific focus on quality and alignment with U.S. investor values, but it is important to note the concentrated nature of the portfolio and the high expense ratio.

Risk Metrics

NBCE presents several risk factors to consider. Its concentrated portfolio of 65 holdings means that the performance of a few key stocks can significantly impact the ETF's overall returns. The fund's sector allocation is heavily weighted towards Technology (25.3%), Industrials (17.3%), and Financial Services (16.5%), increasing its sensitivity to fluctuations within these sectors. With a beta of 1.08, NBCE exhibits slightly higher volatility compared to the broader market. The most significant risk is the extremely high expense ratio of 7.22%, which can create a substantial drag on performance over time, especially when compared to other equity ETFs. Past performance does not guarantee future results.

Expense Ratio

7.22%

What does NBCE hold?

HoldingWeight
Contemporary Amperex Technology Co Ltd Class A (300750.SZ)3.52%
China Merchants Bank Co Ltd Class A (600036.SS)3.29%
Montage Technology Co Ltd Class A (688008.SS)3.07%
Sieyuan Electric Co Ltd Class A (002028.SZ)2.77%
Kweichow Moutai Co Ltd Class A (600519.SS)2.75%
Weichai Power Co Ltd Class A (000338.SZ)2.56%
Zhongji Innolight Co Ltd Class A (300308.SZ)2.31%
Ping An Insurance (Group) Co. of China Ltd Class A (601318.SS)2.30%
Jiangsu Zhongtian Technology Co Ltd Class A (600522.SS)2.28%
Chaozhou Three-Circle (Group) Co Ltd Class A (300408.SZ)2.18%

How Is the Fund Allocated?

SectorWeight
Technology25.3%
Industrials17.3%
Financial Services16.5%
Basic Materials14.6%
Consumer Cyclical7.9%
Consumer Defensive6.3%
Healthcare5.4%
Energy3.9%
Utilities1.6%
Real Estate0.6%
Communication Services0.6%
CountryWeight
China92.8%
Hong Kong2.9%
Other2.6%
Taiwan1.1%
Switzerland0.7%

Dividend Yield

0.00%

Risk Metrics

  • Beta: 1.08

Questions & Answers

What is NBCE and what does it track?

The Neuberger Berman China Equity ETF (NBCE) is an equity ETF that focuses on providing exposure to high-quality, onshore China A-Share companies. It aims to invest in companies that align with the values of many U.S. investors.

Launched in October 2023, NBCE has approximately $0.01 billion in assets under management and holds a concentrated portfolio of 65 stocks.

What is the expense ratio for NBCE?

The Neuberger Berman China Equity ETF (NBCE) has an expense ratio of 7.22%. This is significantly higher than the average expense ratio for equity ETFs, which is around 0.44%.

The high expense ratio can create a substantial drag on the fund's performance over time, as it represents the annual cost of managing the fund's assets.

What are the top holdings in NBCE?

The top holdings in the Neuberger Berman China Equity ETF (NBCE) include Contemporary Amperex Technology Co Ltd Class A (3.52%), China Merchants Bank Co Ltd Class A (3.29%), Montage Technology Co Ltd Class A (3.07%), Sieyuan Electric Co Ltd Class…

A (2.77%), and Kweichow Moutai Co Ltd Class A (2.75%).

Is NBCE a good long-term investment?

Evaluating NBCE as a long-term investment requires careful consideration of its strategy, risk profile, and cost. The ETF offers targeted exposure to Chinese A-shares, which may appeal to investors seeking specific access to that market.

However, the high expense ratio of 7.22% can significantly impact long-term returns. Additionally, the concentrated portfolio and sector allocations introduce specific risks.

How does NBCE compare to similar ETFs?

NBCE differentiates itself with its focus on high-quality, onshore China A-Share companies and alignment with U.S. investor values. However, its expense ratio of 7.22% is substantially higher than many competing China-focused ETFs.

While some competitors may offer broader exposure or different sector allocations, NBCE's concentrated approach and specific investment criteria set it apart.

Does NBCE pay dividends?

According to the latest data, the Neuberger Berman China Equity ETF (NBCE) has a dividend yield of 0.00%. This indicates that the fund is not currently distributing any dividends to its shareholders.

Investors seeking dividend income may need to consider other ETFs with a history of dividend payments. The fund's focus is primarily on capital appreciation through investments in Chinese equities, rather than generating income through dividends.