ETF Trends
ETF Trends

Nuveen has expanded its suite of NuShares exchange traded funds with five new offerings that screen companies of various market capitalization and asset categories for environmental, social and governance principles.

On Wednesday, Nuveen came out with the following ESG-related ETFs:

  • NuShares ESG Large-Cap Value ETF (BATS: NULV) seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Large-Cap Growth Index. NULV has a 0.35% expense ratio.
  • NuShares ESG Large-Cap Growth ETF (BATS: NULG) seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Large-Cap Growth Index. NULG has a 0.35% expense ratio.
  • NuShares ESG Mid-Cap Value ETF (BATS: NUMV) seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Mid-Cap Value Index. NUMV has a 0.40% expense ratio.
  • NuShares ESG Mid-Cap Growth ETF (BATS: NUMG) seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Mid-Cap Growth Index. NUG has a 0.40% expense ratio.
  • NuShares ESG Small-Cap ETF (BATS: NUSC) seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Small-Cap Index. NUSC has a 0.40% expense ratio.

Nuveen is a part of TIA CREF, and the ESG ETFs draw upon the decades-long responsible investment expertise of TIAA Investments, according to a note.

The underlying indices select components with considerations given to certain ESG criteria established by the sub-advisor, Teachers Advisors LLC, an affiliate of TIAA.

“Environmental assessment categories can include a company’s impact on climate change, natural resource use, and waste management and emission management,” according to a note. “Social evaluation categories can include a company’s relations with employees and suppliers, product safety and sourcing practices. Governance assessment categories can include a company’s corporate governance practices and business ethics.”

Moreover, the ESG criteria will consider how well a company adheres to national and international laws and regulations, along with commonly accepted ESG norms around the world.

On the other hand, due to the ESG criteria, the funds will exclude certain industries, including those associated with alcohol, tobacco, military weapons, firearms, nuclear power and gambling, among others.

“This latest offering highlights the many areas of strength across our firm as we are able to leverage the widely respected ESG expertise of TIAA with the product development and service platform of Nuveen,” Martin Kremenstein, Managing Director and Head of Exchange-Traded Funds at Nuveen, said in a note.

ESG strategies have been gaining wider acceptance. According to a recent TIAA Global Asset Management survey of over 1,000 high net worth U.S. investors, 89% of respondents showed they would invest responsibly as long as they could achieve similar or better returns while almost three quarters revealed they would more likely work with advisors whom were able to offer competitive investment options that have a positive impact on society.

“Investors are beginning to realize that it is indeed possible to build a well-diversified portfolio of ESG options that can deliver competitive returns. Offering a comprehensive range of ESG products and strategies that helps investors achieve their financial goals is critical,” Amy O’Brien, managing director and head of Responsible Investment at TIAA Global Asset Management, said in a note.

For more information on new fund products, visit our new ETFs category.