CHICAGO--(BUSINESS WIRE)--Nuveen has launched two new exchange-traded funds (ETFs) that track indices employing environmental, social and governance (ESG) criteria. The NuShares ESG International Developed Markets Equity ETF (NUDM) and NuShares ESG Emerging Markets Equity ETF (NUEM) will begin trading today on the Bats Exchange, Inc. The funds seek to track the investment performance of the TIAA ESG International Developed Markets Equity Index and TIAA ESG Emerging Markets Equity Index, respectively.
This latest offering complements NuShares’ recently launched domestic equity ESG ETFs, making this larger suite of funds one of the most comprehensive offerings of domestic and international ESG ETFs in the asset management industry. As with NuShares’ domestic equity ESG ETFs, these new funds draw upon the deep and highly-respected responsible investment expertise of TIAA Investments.
“As we designed our latest ETF offering, we wanted to squarely address investors’ desire to diversify their core equity portfolio with investment options that not only provide key benchmark exposure, but also align their international equity investments with their values,” said Martin Kremenstein, Senior Managing Director and Head of Exchange-Traded Funds at Nuveen. “To date, there have been limited ETF solutions for investors who value ESG principles, yet want to assemble a full equity asset allocation framework. When taken as a whole, our growing suite of ESG ETFs addresses this need.”
“We’ve certainly seen that investor motivations for adopting responsible investment approaches to managing their money are on the rise. Investors large and small are beginning to understand that the integration of environmental, social and governance factors within their investment portfolios actually has the potential to reduce risk and enhance long-term investment performance. Those advisors and consultants who can assist their clients in evaluating the significant differences among available ESG products and strategies in order to select those that are an appropriate fit, will prove themselves to be invaluable,” said Amy O’Brien, managing director and head of Responsible Investment at TIAA Investments.
For more information about the NuShares ESG ETFs, please visit Nuveen’s NuShares ETF homepage by clicking NuShares ETFs.
The TIAA ESG indices are custom indices owned, calculated and controlled by MSCI, Inc. (MSCI). The TIAA ESG International Developed Markets Equity Index is based on the MSCI EAFE Index, and the TIAA ESG Emerging Markets Equity Index is based on the MSCI Emerging Markets Index. Each TIAA ESG index aims to increase exposure to positive environmental, social and governance factors and exhibit lower carbon exposure as compared to its respective MSCI index by utilizing ESG criteria initially established by the Fund’s sub-adviser, Teachers Advisors, LLC, an affiliate of TIAA. ESG performance is measured on an industry-specific basis, with assessment categories varying by industry. Environmental assessment categories can include a company’s impact on climate change, natural resource use, and waste management and emission management. Social evaluation categories can include a company’s relations with employees and suppliers, product safety and sourcing practices. Governance assessment categories can include a company’s corporate governance practices and business ethics. The ESG criteria also consider how well a company adheres to national and international laws and regulations as well as commonly accepted global norms related to ESG matters. The indices generally exclude companies with significant activities in certain controversial businesses, including those involving alcohol, tobacco, military weapons, firearms, nuclear power and gambling, among others. TIAA has licensed its name to MSCI for use in the names of the indices.
About Nuveen
Nuveen offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. As the investment management arm of TIAA, Nuveen has $906 billion in assets under management as of 3/31/17 and operations in 16 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.
Risk Considerations
Investing involves risk; principal loss is possible. There is no guarantee the Funds’ investment objectives will be achieved. An exchange-traded fund seeks to generally track the investment results of an index; however the Fund may underperform, outperform or be more volatile than the referenced index. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. For the NuShares ESG Emerging Markets Equity ETF, these risks are magnified in emerging markets. In addition, because the Index selects securities for inclusion based on environmental, social, and governance (ESG) criteria, the Funds may forgo some market opportunities available to funds that don’t use these criteria. A portfolio concentrated in a single industry sector or country may present more risk than a portfolio broadly diversified over several industries or countries. These and other risks, such as mid-cap stock risk, are described in the Funds’ prospectuses.
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 Funds, but blocks of shares may be acquired from the Funds and tendered for redemption to the Funds by certain institutional investors in Creation Units.
NUVEEN and NuShares are registered trademarks of Nuveen. TIAA is a registered trademark of TIAA, and is used by MSCI under license.
The NuShares ESG ETFs are not sponsored, endorsed, issued, sold or promoted by MSCI. MSCI makes no representation regarding the advisability of investing in the ETFs. MSCI makes no warranty regarding the indices upon which the NuShares ESG ETFs are based. MSCI is not affiliated with Nuveen or any of its affiliates.
Securities offered through Nuveen Securities, LLC, member FINRA and SIPC.
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