Nuveen Looks to Aggregate Bonds for First ETF Launch Today

Nuveen Investments, a division of TIAA Global Asset Management, launched its first ETF today under the brand NuShares.

Martin Kremenstein, an ETF veteran, has been leading the new ETF effort at Nuveen. NuShares Enhanced Yield U.S. Aggregate Bond ETF (NYSEArca: NUAG) seeks to offer enhanced yield relative to the broad, investment-grade fixed income market with comparable risk and credit quality. “This ETF allows us to serve sector of the fixed income utilizing the expertise of Nuveen fixed income expertise,” said Kremenstein. The ETF is listed on NYSE Arca.

Positioned as a distinct alternative to market-cap weighted strategies, NUAG offers diversified fixed income market exposure coupled with access to the investment expertise of TIAA.

“The fund seeks to track the investment results, before fees and expenses, of the BofA Merrill Lynch Enhanced Yield US Broad Bond Index, a rules-based index designed to enhance income potential while seeking to maintain risk and credit quality at levels similar to that of the BofA Merrill Lynch US Broad Market Index,” according to Nuveen. “NUAG may be an attractive addition to a portfolio as a diversified core fixed income allocation.”