+ 0.21
+ 0.05%

Nuveen Rolls Out Aggregate Bond ETF

September 16, 2016 1:46 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Nuveen, a unit of TIAA Global Asset Management, made its long-awaited reentry into the exchange-traded funds business Thursday with the debut of an aggregate bond fund.

The NuShares Enhanced Yield U.S. Aggregate Bond ETF (NYSE: NUAG) is the first ETF to launch on Nuveen's NuShares platform. NUAG tracks the Bank of America Merrill Lynch Enhanced Yield U.S. Broad Bond Index.


NUAG “offers the potential for enhanced yield with the risk and credit quality profile of the broad investment grade fixed income market. The Fund invests primarily in U.S. government securities, debt securities issued by U.S. corporations, residential and commercial mortgage-backed securities, asset-based securities and U.S. dollar-denominated debt securities issued by non-U.S. governments and corporations,” according to Nuveen.

NUAG debuted with $50 million in assets under management, immediately making it one of the more successful ETFs to debut this year.

The new ETF has nearly 260 holdings. The bulk of NUAG's top 10 holdings are U.S. dollars and U.S. government debt.

NUAG's “Enhanced Index uses a rules-based methodology that allocates higher weights to securities and sectors that have the potential for higher yield while maintaining comparable risk,” according to Nuveen. Those traits could make the rookie fund an attractive alternative to traditional, cap-weighted aggregate bond ETFs.

Related Link: JPMorgan Adds A Junk Bond ETF

Nuveen is not likely to stop with NUAG when it comes to its ETF efforts. Earlier this week, a statement revealed the Securities and Exchange Commission (SEC) has extended the review period for Nuveen's plans to convert the Nuveen Diversified Commodity Fund (NYSE: CFD) and Nuveen Long Short Commodity Total Return (NYSE: CTF) to the ETF structure.

“If the SEC approves the proposed rule, the funds intend to complete their conversion to ETFs as soon as practicable thereafter,” said Nuveen in the most recent statement.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you’d like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Related Articles

Beginning Investor? Here's How To Protect Your Portfolio In 2021

A flood of new traders joined the market in 2020 thanks to the coronavirus pandemic. Most of those traders are sitting on big gains at this point thanks to a historic market rally, but much of the easy rebound money may have already been made at this point. read more

3 Thematic ETFs Demanding Investor Attention In 2021

Every year, the top asset-gathering exchange traded funds are pure beta, broad market funds. Think the Vanguard Total Stock Market ETF (NYSEARCA: VTI), Invesco QQQ (NASDAQ: QQQ) or, in the fixed income department, the iShares Core U.S. Aggregate Bond ETF (NYSEARCA: AGG). read more

The QQQ ETF Joins Exclusive $100B Club

In the world of exchange traded funds, it's often said that $100 million in assets is what an issuer needs to turn a profit on a particular fund. Of course, making it to $1 billion is impressive and $10 billion is rarefied air. read more

Franklin Templeton's LibertyShares Launches Active Core Bond ETF