Nuveen Launches Two New Actively-Managed ETFs, NUGO & NUDV

On Tuesday, Nuveen launched two new ETFs, building on the firm’s proud history of helping investors build better financial futures. These funds are the Nuveen Growth Opportunities ETF (NYSE: NUGO) and the Nuveen ESG Dividend ETF (Cboe: NUDV).

NUGO is actively managed by Karen Hiatt, CFA, and will seek to outperform the Russell 1000 Growth Index by investing in 40–65 high conviction securities, making up approximately 10% of the broader index. The security selection strategy focuses on high-quality companies that exhibit potential for attractive earnings growth, strong relative valuation, attractive cash flows, and significant long-term returns.

The fund is an active semi-transparent ETF. Leveraging the NYSE Active ETF licensing structure, the holdings of this fund will be disclosed on a monthly basis. The fund features the same tax efficiency and intra-day liquidity benefits as an index-tracking ETF.

Nuveen’s Best Thinking Wrapped in an ETF

“Our suite of differentiated ETFs brings to market Nuveen’s industry-leading expertise, from real-estate to high-conviction active strategies, to ESG-enhanced index funds that are informed by a five-decade track record in responsible investing,” said Jordan Farris, head of ETF product development at Nuveen. “These funds have delivered upon their investment objectives since their launch in 2016 and continue to grow as investors increasingly seek unique exposures efficiently delivered in the ETF wrapper.”

Nuveen’s First Alpha-Seeking Strategy to Be Launched Solely as an ETF

Leveraging Nuveen’s expertise in stock selection, analytics, and product structuring capabilities across the scale of its $1.2 trillion platform, NUGO is the firm’s first alpha-seeking strategy to be launched only in the semi-transparent active ETF wrapper.

Industry’s First Low-Carbon ESG Dividend ETF

NUDV is the first ESG dividend ETF in the industry to incorporate a low carbon criteria. The fund focuses on providing yield and seeks to track an ESG-enhanced custom index developed by Nuveen’s Responsible Investing team.

Consistent with Nuveen’s existing suite of 10 ESG-oriented index-tracking ETFs, the underlying holdings of NUDV will be rebalanced quarterly and will incorporate a customized set of eligibility criteria, including ESG rating, controversial business involvement, fossil fuel reserves, and carbon emissions levels, the last of which is a crucial differentiator of Nuveen’s custom methodology.

This enhanced index construction was developed by Nuveen’s Responsible Investing team in partnership with MSCI. Nuveen’s Responsible Investing team is comprised of 25+ individuals and has been a part of the firm’s history for more than five decades. Nuveen oversees more than $41B in ESG-focused investment strategies and today applies RI principles across its $1.2 trillion in AUM.

Expense Ratio Reductions 

A fee reduction of 10 basis points for seven of Nuveen’s enhanced index-tracking equity ESG ETFs (NULG, NULV, NUMG, NUMV, NUSC, NUDM, and NUEM) and a reduction of five basis points for two of Nuveen’s enhanced index-tracking fixed income ESG ETFs (NUBD and NUHY) will be made effective today.

The addition of NUGO and NUDV brings Nuveen’s ETF suite to a total of 18 funds with $4.8 Billion in AUM as of August 31, 2021. 75% of Nuveen’s Morningstar-Rated ESG ETFs have received a four or five-star rating.

For more information, please visit www.nuveen.com.