Today, August 5, Nuveen announced the launch of three new active ETF offerings, the Nuveen Small Cap Select Fund (NSCS), the Nuveen Santa Barbara Dividend Growth Fund (NDVG), and the Nuveen Winslow Large-Cap Growth ESG Fund (NWLG).
All three of Nuveen’s new ETFs are actively managed and semi-transparent, which means that holdings are only disclosed monthly. As with ETFs that track indexes, semitransparent ETFs carry the same tax-efficiency and liquidity benefits of an ETF. All three of the ETFs follow current strategies that are carried within Nuveen’s mutual funds.
“These proven equity strategies incorporate our unique combination of expertise in stock selection, analytics and portfolio modeling with product structuring capabilities across the scale of our $1.2 trillion platform,” said Jordan Farris, Head of ETF Product, Nuveen, in the press release. “We are committed to providing choice to clients within their preferred wrapper and the opportunity to build portfolios across our range of products, including mutual funds, closed-end funds, and both index and active ETF options.”
Nuveen Small Cap Select ETF NSCS
NCSC is a diversified ETF that invests in small cap companies that are trading at a discount to their intrinsic value when there is an apparent catalyst. It draws from the small cap definition of the Russell 2000 Index, whose range was $41 million to $12.4 billion. Nuveen selects stocks that are attractively valued compared to their peers, have strong or improving cash flows, revenue, and earnings growth, and also have an identifiable catalyst that could increase value in the next one to two years.
NSCS carries an expense ratio of 0.85% and, as an active, semi-transparent fund, it lists a proxy portfolio daily, which includes some of but not the actual holdings of the fund.
Nuveen Dividend Growth ETF NDVG
NDVG focuses on top mid- to large-cap companies that have the potential for sustainable dividend growth that provides a total return based on income and capital appreciation while also reducing exposure to risk. As some sectors typically yield higher dividends than others, the fund can have greater exposure to the higher dividend-yield sectors and industries than the broader market at times. It defines dividend paying assets as those that have paid dividends in the previous twelve months or have announced that they will be paying dividends within the next twelve months.
This ETF is based on the most popular active equity fund by flows in Q4 of 2020 and carries an expense ratio of 0.64%. As an active, semi-transparent fund, it lists a proxy portfolio daily, which includes some of but not the actual holdings of the fund.
Nuveen Winslow Large-Cap Growth ESG ETF NWLG
NWLG provides long-term capital appreciation in that it selects companies exhibiting above average earnings growth while assessing ESG factors, giving investors integrated, active growth exposure. It invests primarily in large-cap U.S. companies that exhibit ESG characteristics utilizing a bottom-up investment approach that focuses on growth. NWLG selects companies based on some or all of the following criteria: in an industry with growth potential; leads or gains market share; has identifiable and sustainable competitive advantage; is managed by a team that can maintain the advantage; high, with a preference to rising, ROI; demonstrates ESG characteristics; deploys excess cash flow to enhance shareholder returns; and demonstrates sound corporate governance.
The fund carries an expense ratio of 0.64% and, as an active, semi-transparent fund, it lists a proxy portfolio daily, which includes some of but not the actual holdings of the fund.
Nuveen is the investment manager of TIAA and provides products for institutional and individual investors. Nuveen has $1.2 trillion in AUM as of the end of June and operates in 27 different countries.
All three funds are managed by a total of seven portfolio managers who collectively oversee more than $185 billion in AUM and bring with them nine decades of experience.
Nuveen currently offers over sixteen ETFs with $4.1 billion in AUM as of the end of June. Of the index tracking ETFs, ten of the thirteen have ESG and low-carbon components and criteria.
For more news, information, and strategy, visit the Active ETF Channel.