Nuveen Launches Two New ETFs, Bolstering Both Actively-Managed and Index-Tracking Line Up

Rhea-AI Summary

Nuveen has launched two new ETFs: the Nuveen Growth Opportunities ETF (NUGO) and the Nuveen ESG Dividend ETF (NUDV), enhancing their ETF portfolio to 18 funds with a total AUM of $4.8 billion. NUGO aims to outperform the Russell 1000 Growth Index with a focus on 40-65 high conviction securities. NUDV stands out as the industry's first ESG Dividend ETF to incorporate a low carbon criteria. Additionally, Nuveen announced fee reductions for several existing ESG ETFs, emphasizing their commitment to responsible investing.

Positive

• Launch of NUGO aims to outperform Russell 1000 Growth Index.
• NUDV is the industry's first ESG Dividend ETF with low carbon criteria.
• Total AUM for Nuveen's ETF suite reaches $4.8 billion.
• Fee reductions enhance competitiveness of existing ESG ETFs.

Negative

• None.

NEW YORK, Sept. 28, 2021 /PRNewswire/ -- Nuveen today launched the following two new ETFs, building on the firm's proud history of helping investors build better financial futures:

• The Nuveen Growth Opportunities ETF (NYSE:NUGO) is actively managed by Karen Hiatt, CFA, and will seek to outperform the Russell 1000 Growth Index by investing in 40-65 high conviction securities, making up approximately 10% of the broader index.
• The Nuveen ESG Dividend ETF (Cboe:NUDV) is the first ESG Dividend ETF in the industry to incorporate a low carbon criteria¹. The fund is focused on providing yield and seeks to track an ESG-enhanced custom index developed by Nuveen's Responsible Investing team.

Nuveen's Best Thinking Wrapped in an ETF
"Our suite of differentiated ETFs brings to market Nuveen's industry-leading expertise, from real-estate to high-conviction active strategies, to ESG-enhanced index funds that are informed by a five-decade track record in responsible investing," said Jordan Farris, Head of ETF Product, Nuveen. "These funds have delivered upon their investment objectives since their launch in 2016 and continue to grow as investors increasingly seek unique exposures efficiently delivered in the ETF wrapper."

Nuveen's First Alpha-Seeking Strategy to be Launched Solely as an ETF
Leveraging Nuveen's expertise in stock selection, analytics and product structuring capabilities across the scale of its $1.2 trillion platform, NUGO is the firm's first alpha-seeking strategy to be launched only in the semi-transparent active ETF wrapper.

About the Fund: ETF Name and Ticker:	Nuveen Growth Opportunities ETF (NYSE:NUGO)
ETF Construction:	Active Semi-Transparent ETF Leveraging the NYSE Active ETF licensing structure, the holdings of this fund will be disclosed on a monthly basis. The fund features the same tax-efficiency and intra-day liquidity benefits as an index-tracking ETF.
Investment Objective:	NUGO is an active semi-transparent ETF that seeks to outperform the Russell 1000 Growth index via a portfolio of 40-65 high conviction stock ideas. The security selection strategy focuses on high-quality companies that exhibit potential for attractive earnings growth, strong relative valuation, attractive cash flows, and significant long-term returns.
Reference Benchmark	Russell 1000 Growth Index
Lead Portfolio Manager:	Karen Hiatt, CFA, Managing Director, Equities Portfolio Manager 25 years of investment industry experience Formerly a Managing Director, Senior Portfolio Manager and Head of Global Technology Team at Allianz GI, Karen joined Nuveen in April 2021
Co-Portfolio Manager:	Terrence Kontos, CFA, Managing Director, Equities Portfolio Manager

Industry's First Low-Carbon ESG Dividend ETF 
Stemming from continued investor demand, NUDV will be the industry's only ESG Dividend ETF to incorporate a low carbon criteria. Consistent with Nuveen's existing suite of 10 ESG-oriented index-tracking ETFs, the underlying holdings of NUDV will be rebalanced quarterly and will incorporate a customized set of eligibility criteria, including ESG rating, controversial business involvement, fossil fuel reserves, and carbon emissions levels, the latter of which is a key differentiator of Nuveen's custom methodology.

This enhanced index construction was developed by Nuveen's Responsible Investing team in partnership with MSCI. Nuveen's Responsible Investing team is comprised of 25+ individuals and has been a part of the firm's history for more than 5 decades. Nuveen oversees more than $41B in ESG-focused investment strategies, and today applies RI principles across its $1.2 trillion in AUM.

About the Fund: ETF Name and Ticker:	Nuveen ESG Dividend ETF (Cboe:NUDV)
ETF Construction:	Index-tracking ETF
Investment Objective:	NUDV seeks to provide exposure to high dividend paying U.S. equities while using rules-based selection criteria to achieve a higher yield, superior ESG rating and a lower carbon profile than the MSCI USA Index.
Reference Benchmark	MSCI USA Index

Expense Ratio Reductions 
A fee reduction of ten basis points for seven of Nuveen's enhanced index-tracking equity ESG ETFs (NULG, NULV, NUMG, NUMV, NUSC, NUDM, and NUEM) and a reduction of five basis points for two of Nuveen's enhanced index-tracking fixed income ESG ETFs (NUBD and NUHY) will be made effective today.

The addition of NUGO and NUDV brings Nuveen's ETF suite to a total of 18 funds with $4.8 Billion in AUM as of 8/31². Seventy-five percent of Nuveen's Morningstar-Rated ESG ETFs have received a 4 or 5 star-rating.³ 

About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.2 trillion in assets under management as of 30 June 2021 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

Media Contacts:

• Sally Lyden: e) Sally.Lyden@Nuveen.com  p) (646) 662 3490
• E-Soo Kim: e) E-Soo.Kim@Nuveen.com p) (201) 421 0417

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor's objectives and circumstances and in consultation with his or her advisors.

A word on risk

Investing involves risk; principal loss is possible. There is no guarantee the Fund's investment objectives will be achieved. This ETF seeks to generally track the investment results of an index; however the Fund may underperform, outperform or be more volatile than the referenced index. In addition, because the Index selects securities for inclusion based on environmental, social, and governance (ESG) criteria, the Fund may forgo some market opportunities available to funds that don't use these criteria. The value of equity securities may decline significantly over short or extended periods of time. Dividend-paying stocks, such as those held by the Fund, are subject to market risk, concentration or sector risk, preferred security risk, and common stock risk.

Exchange Traded Funds (ETFs) may not be marketed or advertised as an open-end investment company or mutual fund. Shares of ETFs are bought and sold at market price as opposed to net asset value. As a result, an investor may pay more than net asset value when buying and receive less than net asset value when selling. In addition, brokerage commissions will reduce returns. Fund shares are not individually redeemable directly with the Fund, but blocks of shares may be acquired from the Fund and tendered for redemption to the Fund by certain institutional investors in Creation Units.

Before investing, carefully consider fund investment objectives, risks, charges and expenses. For this and other information that should be read carefully, please request a prospectus or summary prospectus from your financial professional or Nuveen at 866.802.6398 or visit nuveen.com.

Nuveen Fund Advisors, LLC serves as the Fund's adviser and Nuveen Asset Management, LLC and Teachers Advisors, LLC, serve as the Funds' sub-advisers; both the adviser and sub-adviser are subsidiaries of Nuveen, LLC. Nuveen Securities, LLC, member FINRA and SIPC.

¹ Morningstar as of 9/20/2021
² Nuveen 8/31/2021
³ Morningstar Direct 8/31/2021

 

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SOURCE Nuveen

FAQ

What are the new ETFs launched by Nuveen on September 28, 2021?

Nuveen launched the Nuveen Growth Opportunities ETF (NUGO) and the Nuveen ESG Dividend ETF (NUDV) on September 28, 2021.

What does the Nuveen Growth Opportunities ETF (NUGO) aim to achieve?

NUGO seeks to outperform the Russell 1000 Growth Index by investing in 40-65 high conviction securities.

What makes the Nuveen ESG Dividend ETF (NUDV) unique?

NUDV is notable for being the first ESG Dividend ETF in the industry to incorporate a low carbon criteria.

What is the total AUM of Nuveen's ETF suite as of September 2021?

As of September 2021, Nuveen's ETF suite has a total AUM of $4.8 billion.

What fee changes has Nuveen implemented for its ESG ETFs?

Nuveen announced a fee reduction of ten basis points for seven enhanced index-tracking equity ESG ETFs and five basis points for two fixed income ESG ETFs.