Two top holdings for the actively managed Neuberger Berman Disrupters ETF (NYSE Arca: NBDS) outperformed their peers on Thursday. While shares of Keysight Technologies Inc. (KEYS) fell 0.22% to $160.80 on Oct. 20, the tech firm’s stock outperformed several of its competitors, including National Instruments Corp. (NATI), Ametek Inc. (AME), and Danaher Corp. (DHR). Meanwhile, shares of Analog Devices Inc. (ADI) closed 0.53% higher on Thursday to $142.08, outperforming competitor Microchip Technology Inc. (MCHP).
Keysight Technologies is a Santa Rosa, Calif.-based manufacturer of electronics test and measurement equipment and software. Analog Devices is a semiconductor company based in Wilmington, Mass. Keysight and Analog are the second and third-largest holdings in NBDS as of Oct. 20, weighted at 6.18% and 6.13%, respectively.
The actively managed NBDS seeks to invest in companies pursuing disruptive growth agendas that the team believes will shape the future and can invest globally across market capitalizations. Rather than use traditional sector classification, the fund’s managers employ a disciplined process to seek innovative companies consistent with a longer-term investment horizon. The portfolio team uses machine learning, language processing, and cloud computing techniques to construct a targeted portfolio of roughly 30 companies.
“Here at Neuberger Berman, our disruptive growth strategy relies on a fundamental, disciplined approach designed to give investors favorable risk-reward regardless of the macro environment,” Neuberger Berman ETF Specialist Fred Edwards told VettaFi.
Edwards added that Neuberger Berman sees “the need to be active here because successful growth investing is more likely to be a function of sound fundamental analysis and dynamic risk management in the next few years than it was in the past.”
NBDS is one of three actively managed ETFs that Neuberger Berman launched in April. The ETFs are an extension of the firm’s thematic equity investment capabilities using traditional fundamental equity research along with alternative data capabilities and consideration of material environmental, social, and governance factors.
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