A Smart-Beta, Short-Duration Bond ETF Core Position

NUSA will help provide investors with “enhanced yield potential relative to the short-term, taxable investment grade fixed income market with comparable risk, a diversified core allocation in an income portfolio and exchange-traded liquidity and transparency,” according to Nuveen.

Current sector allocations include corporate debt 50.2%, securitized debt 27.0% and U.S. Treasury 22.8%.

Credit quality breakdown includes 46.8% AAA-rated, 6.3% AA, 17.9% A and 29.0% BBB.

NUSA’s underlying index shows a 2.13% yield to worst and an effective duration of 2.88 years.

The new short-term, smart-beta ETF will also complement Nuveen’s recently launched ETF alternative to the benchmark Barclays U.S. Aggregate Bond Index, the NuShares Enhanced Yield U.S. Aggregate Bond ETF (NYSEArca: NUAG).

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