NEW YORK--(BUSINESS WIRE)--The Nuveen ESG High Yield Corporate Bond ETF (NUHY), a new exchange-traded fund (ETF) designed to offer exposure to high yield corporate bonds while adhering to predetermined environmental, social and governance (ESG) factors, controversial business involvement (CBI) and low carbon criteria, is now available. The fund is the industry’s first high yield corporate bond ESG ETF and will begin trading today on the New York Stock Exchange (NYSE).
The Nuveen ESG High Yield Corporate Bond ETF further complements Nuveen’s existing ETF offering is among the most comprehensive suite of ESG ETFs in the asset management industry with options spanning domestic equity, international equity, investment grade bonds, and now high-yield corporate bonds. The fund fills an industry-wide product gap and was developed in response to investors’ desire for income in a historically low-yield environment as well as to allow for greater portfolio diversification.
“We are pleased to continue our tradition of product innovation with the launch of the industry’s first high yield corporate bond ESG ETF,” said Jordan Farris, managing director and head of ETFs at Nuveen. “The Nuveen ESG High Yield Corporate Bond ETF seeks the dual objectives of offering investors competitive income while remaining consistent with environmental, social, and governance values.”
The Nuveen ESG High Yield Corporate Bond ETF will seek to provide investment results, before fees and expenses, similar to those of its primary benchmark, the Bloomberg Barclays MSCI US High Yield Very Liquid ESG Select Index. It will provide exposure to the below investment grade taxable fixed income market while adhering to predetermined ESG-focused criteria as designed by MSCI and Nuveen’s Responsible Investing team.
For more information about the Nuveen ESG ETF suite, please visit Nuveen’s ETF homepage at www.nuveen.com/exchange-traded-funds.
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has more than $1 trillion in assets under management as of 30 June 19 and operations in 23 countries. Its affiliates offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.
Before investing, carefully consider fund investment objectives, risks, charges and expenses. For this and other information that should be read carefully, please request a prospectus or summary prospectus from your financial advisor or Nuveen at 800-257-8787 or visit www.nuveen.com.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
Investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. This ETF seeks to generally track the investment results of an index; however the Fund may underperform, outperform or be more volatile than the referenced index. In addition, because the Index selects securities for inclusion based on environmental, social, and governance (ESG) criteria, the Fund may forgo some market opportunities available to funds that don’t use these criteria. Investments in below investment grade or high yield securities are subject to liquidity risk and heightened credit risk. Credit risk arises from an issuer’s ability to make interest and principal payments when due, as well as the prices of bonds declining when an issuer’s credit quality is expected to deteriorate. The Fund is subject to interest rate risk; as interest rates rise, bond prices fall. These and other risk considerations, such as call, concentration and income risks, are described in detail in the Fund’s prospectus.
Shares of ETFs are bought and sold at market price as opposed to net asset value. As a result, an investor may pay more than net asset value when buying and receive less than net asset value when selling. In addition, brokerage commissions will reduce returns. Fund shares are not individually redeemable directly with the Fund, but blocks of shares may be acquired from the Fund and tendered for redemption to the Fund by certain institutional investors in Creation Units.
The ETF is not sponsored, endorsed, or promoted by MSCI ESG Research LLC (MSCI ESG Research), Bloomberg Index Services (Bloomberg), or Barclays Bank PLC (Barclays), and they each bear no liability with respect to the ETF or the Index the ETF seeks to track. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI ESG Research, Bloomberg, and Barclays have with Nuveen, LLC and the ETF.
Securities offered through Nuveen Securities, LLC, member FINRA and SIPC.