Markets
STT

Nuveen Files Plans for Aggregate Bond ETF

Nuveen Investments, which has been angling to get back into the exchange traded funds business after a lengthy absence, filed plans with the Securities and Exchange Commission to possibly launch an aggregate bond ETF, the NuShares Enhanced Yield U.S. Aggregate Bond ETF .

That ETF "would track an index comprised of investment grade government, corporate, residential and commercial mortgage-backed securities and asset-backed bonds. It will track an index called the TIAA Enhanced Yield U.S. Aggregate Bond Index (TIAA Global Asset Management owns Nuveen)," reports Chris Dieterich for Barron's.

Related: 28 ETFs for Investment-Grade Corporate Bond Exposure

Aggregate bond ETFs, such as the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG ) , which tracks the Barclays Aggregate Bond Index, are favorites among advisors and investors, but these funds are often heavily allocated to Treasuries, implying some level of vulnerability should interest rates climb.

Trending on ETF Trends

TLT: A Bond ETF that can Keep Soaring

U.S. Commodity Funds Planning Canadian Crude ETF

An Interesting Bet on a Bond ETF

VanEck to Reverse Split MLP ETF

Lessons From the Kardashians Producing More Coin than the U.S. Mint

With plenty of assistance from the Federal Reserve's refusal to raise interest rates to this point in 2016, fixed income exchange traded funds have been favored destinations for advisors and investors. Four of this year's top 10 asset-gathering ETFs are bond funds.

Last year, Nuveen revealed plans to convert some of its commodities mutual funds to ETFs as part of its effort to reenter the ETF business.

Nuveen has not been completely absent from the ETF business. The firm partners with State Street's ( STT ) State Street Global Advisors unit on at least seven fixed income ETFs, including the SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEArca: HYMB ), SPDR Nuveen Barclays Build America Bond ETF (NYSEArca: BABS ) and the SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI ).

Related: Bond ETF Jitters

"Nuveen applied with the SEC for "exemptive relief" for actively managed and index-tracking exchange-traded funds last year. Nuveen pioneered but didn't pursue plans more than a decade ago to bring the first bond ETF to market," according to Barron's.

For more information on the fixed-income market, visit ourbond ETFs category .

Tom Lydon's clients own shares of AGG.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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

This article was provided by our partner Tom Lydon of etftrends.com.


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

In This Story

STT

Other Topics

ETFs