Issuer Q&A with Nuveen

Briton Ryan, Head of ETFs at Nuveen
Danielle Rutsky, Senior Product Manager, Nasdaq ETP Listings

Why do actively managed fixed income ETFs make sense for investors now?

Many investors are sitting on high levels of cash and cash equivalents, preferring to earn what looks like a decent yield in today’s higher interest rate environment, rather than take on additional credit risk. Now that the Fed has indicated an end to the rate hiking cycle – with expected rate cuts in 2024 – those same investors are re-thinking the opportunity cost of being in cash by turning to active management to help navigate their income needs. With Nuveen’s strong legacy of delivering income solutions for investors, we believe that our actively managed fixed income ETFs are timely strategy options for investor portfolios.

Q: You just launched NCPB, NPFI and NUSB on Nasdaq. Tell us about the role they can play in client portfolios.

We see these ETFs as income building blocks for investors to target differentiated sources of income in their portfolios such as core, preferred and ultra-short. 

Nuveen Core Plus Bond ETF (NCPB) will be the mainstay of our suite. NCPB is well positioned for this role, offering broad exposure to all segments of fixed income with the flexibility of active management.

Nuveen Preferred and Income ETF (NPFI) provides an additional source of meaningful income, as well as diversification to the core holdings. Historically, preferred securities have shown a low correlation to other asset classes.

Nuveen Ultra Short ETF (NUSB) rounds out this initial offering as a fantastic option for cash and liquidity management by providing elevated income relative to cash, while managing duration exposure and further diversifying an investor’s fixed income portfolio.

What is next for Nuveen ETFs?

As one of the largest fixed income managers, with $428B in fixed income assets, we are excited to bring this expertise to our ETF platform and intend to continue growing our active fixed income offerings to meet investor demand. With the launch of these three active fixed income strategies, Nuveen’s ETF line-up expands to 23 strategies with $9.1B in AUM spanning across asset classes.

For more information, please visit https://www.nuveen.com/en-us/exchange-traded-funds

This piece was published for use in the Nasdaq ETF Intel Newsletter. Subscribe here for more ETF content.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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NCPB NPFI NUSB