The Nuveen ESG Large-Cap ETF (NULC), a new exchange-traded fund (ETF) designed to offer exposure to the U.S. large-cap market while adhering to certain environmental, social and governance (ESG) principles, began trading on the Cboe BZX Exchange, Inc.
This latest offering from Nuveen, a leader in responsible investing (RI), complements its existing suite of ESG ETFs, making it among the most comprehensive offering of domestic equity, international equity and fixed income ESG ETFs in the investment management industry.
“The addition of a large-cap strategy to our ESG ETF suite provides a great opportunity for investors to build a broadly diversified ETF portfolio integrating responsible investing principles,” said Jordan Farris, head of ETF Product Development at Nuveen. “We firmly believe that the benefits of risk mitigation inherent in an RI approach offer the potential for having a positive long-term impact on investment performance.”
The Nuveen Large-Cap ETF seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Large Cap Index (the Index). Like the other ETFs in the Nuveen ESG suite, the Index methodology was created in collaboration with the Responsible Investing team at Nuveen, one of the largest managers of responsible investment assets in the U.S. across multiple asset classes.
The Index selects from the securities included in the MSCI USA Index (the Base Index), which generally consists of large-and mid-capitalization U.S. equity securities. MSCI Inc. (MSCI) is the index provider for the Index and the Base Index. The Index and the Base Index are owned, calculated and controlled by MSCI, in its sole discretion. Neither the sub-adviser nor its affiliates has any discretion to select Index components or change the Index methodology.
Nuveen continues to build out its responsible investing product offering in response to investor appetite. Notably, findings from its latest annual survey revealed a fourth consecutive year of strengthening interest in responsible investing among investors, with 93% of millennials and 78% of non-millennials expressing interest in this approach.
Findings from the survey also indicated that investment performance and risk management were the driving factors among high net worth investors choosing responsible investing as an approach. Additionally, results indicated a nearly 200% increase in the number of RI conversations taking place between advisors and their clients over the past year.
“Nuveen’s latest responsible investing survey results demonstrate the continued need for investment options that put responsible investing principles at the forefront,” said Amy O’Brien, senior managing director and global head of responsible investing at Nuveen. “The launch of this newest ETF offers a competitive and innovative ESG large-cap solution to our clients,” O’Brien continued.
The full version of Nuveen’s annual responsible investing survey findings is available to download here.
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