Nuveen Investments, which has been away from the exchange traded funds business for 15 years, took another step toward returning when shareholders of one of the firm’s commodity mutual funds approved the conversion of that fund into an ETF.
After the close of U.S. markets Tuesday, Nuveen said in a statement “shareholders of the Nuveen Diversified Commodity Fund (CFD), have approved the plan to convert the fund into an open-ended exchange-traded fund (ETF). The conversion plan is also contingent on customary regulatory approvals.”
Converting CFD to an ETF now requires regulatory and the fund could become an ETF by the fourth quarter. In May, Nuveen said shareholders of the Nuveen Long/Short Commodity Total Return Fund (NYSEArca: CTF), have approved the plan to convert the fund into open-ended exchange-traded fund (ETF). The conversion plan is also contingent on customary regulatory approvals, according to a statement.
Nuveen said in December it was planning to convert CTF and CFD into ETFs. CFD invests in an array of commodity futures and forward contracts. As of the end of November, the mutual fund allocated a combined 26.5% of its weight to oil and gold, according to issuer data. The fund’s annual expenses total 1.75%.