Neuberger Berman Small-Mid Cap ETF

Neuberger Berman Small-Mid Cap ETF (NBSM) is an actively managed fund that picks mostly US small- and mid-sized company stocks its managers see as undervalued and financially strong. Its 0.65% expense ratio is above the 0.46% average of the similar funds compared here. With $115 million in net assets as of August 31, 2026, it was the smallest fund in that group.

• Over the year to Oct 27, 2026, NBSM returned +11.0%, 6th of 7 among similar funds.
• Its worst full calendar year was 2025 (0.0%); its best was 2025 (0.0%).
• The deepest fall in its price history was 25.2% (Nov 25, 2024 to Apr 8, 2025), recovered by Jun 25, 2026.

As of Aug 31, 2026, the fund held 76 securities; the ten largest made up 20.23% of assets.

• Over the three months to Aug 31, 2026, investors withdrew a net $122.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.44%, -0.59%, +1.71%.

NBSM does not track an index. Neuberger Berman's portfolio managers choose its stocks. The fund normally keeps at least 80% of its net assets in small- and mid-cap companies. These are companies whose market capitalization (total stock market value) falls within the range of the Russell 2000 or Russell Midcap index when first bought. Up to 10% can go into foreign companies, and the managers may lean toward sectors they expect to gain from economic trends.

The managers pick stocks "bottom-up," which means they study individual businesses rather than starting from economic forecasts. They look for growing, financially strong companies they believe are mispriced, often because few analysts follow them. Traits they favor include above-average past returns, an established niche, barriers that keep competitors out, and the ability to fund growth on their own. They also weigh environmental, social and governance factors they consider financially material, but the fund is not a sustainable or impact fund. They may sell when a stock hits a target price or the business disappoints.

The prospectus sets no fixed weighting formula or rebalancing schedule. Instead, the managers aim to spread money widely across companies and industries. As of August 31, 2026, the fund held 76 stocks and no derivatives, and its top 10 holdings made up about 20% of assets. Its 39% turnover means it replaced roughly two-fifths of the portfolio over a year.

• NBSM charges 0.65% a year, versus an average of 0.46% for the similar funds below (6th of 7, cheapest first).
• Of that, 0.6% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.1% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $901 over 10 years (assuming a 5% annual return).

It is a small, actively managed fund of smaller-company stocks with a short track record, a fee above its peers and a deep drop already in its history.

NBSM could add exposure to smaller US companies, which large-company index funds hold little of. Its record is short: it launched March 20, 2024, so it has no history through the 2008, 2020 or 2022 sell-offs. Its deepest drop was about 25%, from November 25, 2024 to April 8, 2025. It took about 14.6 months from that low to recover, on June 25, 2026. Anyone who had to sell shares during that stretch would have locked in losses. It returned -0.04% in 2025, its only full calendar year. Income is small: the yield was 0.35% as of October 27, 2026, paid once a year. In the SEC's standard example, costs on $10,000 come to $66 after one year and $901 after 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).