What Is the NUSC ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
This ETF invests in US small-cap stocks that meet ESG criteria, seeking market returns while taking social responsibility into account.
SubscribeWhat Is This ETF?
It tracks the MSCI Nuveen ESG USA Small Cap Index and holds small-cap stocks with strong ESG ratings, weighted by market capitalization. Investment suitability is assessed through multifaceted evaluations covering carbon emissions, labor relations, corporate ethics, and more.
It suits value-oriented investors who want to participate in small-cap growth while prioritizing ESG values.
Nuveen launched it in 2016, and it is managed passively, tracking an index.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI Nuveen ESG USA Small Cap Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Annual |
| Total Expense Ratio | 0.31% |
After excluding industries with socially negative impacts, such as alcohol, tobacco, gambling, and weapons, the index selects the top companies by ESG score within each sector. This keeps sector weights similar to those of a standard small-cap index and helps manage tracking error.
- Strict ESG screening and negative screening applied
- Even exposure across the broader small-cap market
Size and Costs
Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.31% per year.
The expense ratio is somewhat higher than those of large-cap ETFs with a similar ESG concept, such as ESGU or ESGV, but it remains reasonable within the small-cap category. Its asset base also ranks near the top among small-cap ESG funds.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAs small caps tend to be sensitive to the macroeconomy and the interest rate environment, the fund has delivered steady results as market interest in sustainable investing and responsible management has grown.
Assets have flowed in steadily as institutional and retail investors expand their ESG allocations, and the fund has built a relatively solid base of support even during periods of market volatility.
Pros and Cons
The fund lets investors pursue responsible investing and growth at the same time, but it carries the high volatility inherent to small caps as well as sector concentration risk.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
DSI and SUSA, shown in the table, are large-cap-focused ESG ETFs, and holding them together with NUSC lets you build an ESG portfolio spanning the entire US market. If low fees are a priority, a climate-focused product such as USCA is also worth considering. Among individual stocks, names such as FTI, NVT, and CRS rank among the top holdings.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 ESGU | iShares Trust iShares ESG Aware MSCI USA ETF | $165.22 | -1.9% | $18.2B | 0.15% | 0.94% | +10.9% |
 ESGV | Vanguard ESG U.S. Stock ETF | $132.73 | -2.1% | $13.3B | 0.09% | 0.9% | +9.8% |
 DSI | iShares ESG MSCI KLD 400 ETF | $142.93 | -2.1% | $5.5B | 0.25% | 0.89% | +10.2% |
 SUSA | iShares ESG Optimized MSCI USA ETF | $155.03 | -1.9% | $4.1B | 0.25% | 0.84% | +11.5% |
 USCA | Xtrackers MSCI USA Climate Action Equity ETF | $44.81 | -1.8% | $3.5B | 0.07% | 1.06% | +6.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 FTI | TechnipFMC plc | 0.01% | $68.77 | +2.7% | $27.0B | 21.7 | 0.37% |
 NVT | nVent Electric plc | 0.02% | $125.98 | -8.8% | $20.4B | 34.8 | 0.62% |
 ATI | ATI Inc | 0.02% | $165.59 | -5.4% | $22.5B | 41.3 | - |
 CRS | Carpenter Technology Corp | 0.01% | $283.08 | -5.2% | $14.0B | 24.9 | 0.29% |
 EWBC | East West Bancorp Inc | 0.01% | $130.81 | -1.6% | $17.9B | 12.4 | 2.29% |
 SNX | TD Synnex Corp | 0.01% | $236.62 | -7.2% | $18.9B | 14.4 | 0.81% |
 VTRS | Viatris Inc | 0.01% | $19.03 | -0.9% | $21.9B | - | 2.65% |
 HST | Host Hotels & Resorts Inc | 0.01% | $25.30 | -1.6% | $17.3B | 17.0 | 6.22% |
Investor Checkpoints
When investing in NUSC, you should consider both the small-cap market cycle and the strictness of the ESG criteria, because this strategy pursues value beyond simple returns.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📊 ESG Ratings | Overall ESG assessment level of the holdings | Good |
| 📈 Interest Rate Environment | Impact on small caps depending on whether high rates persist | Needs review |
| 🏭 Sector Weights | Changes in industrials and financials weightings | Appropriate |
| 💧 Liquidity | Daily trading volume and bid-ask spread | Appropriate |
Some high-growth stocks may be excluded under the ESG criteria, and investors should be aware that in a recession the fund may face relatively greater downward price pressure than large caps.
It is a suitable choice for investors who want to invest in US small caps while realizing social values. It works well as one pillar of a portfolio that pursues sustainable growth over the long term.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
Today's 5 AI picks, all free