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Nuveen Debuts Impact Bond ETF (NUIB) Targeting Alpha & Sustainability

On September 14, Nuveen launched a new actively managed exchange-traded fund that focuses on investment-grade, U.S.-dollar fixed income securities that finance positive environmental and societal outcomes. The Nuveen Impact Bond ETF (NUIB) aims to outperform its broad-market benchmark, which is the Bloomberg U.S. Aggregate Bond Index, while simultaneously maintaining strong risk management.Key Takeaways: NUIB is an actively managed exchange-traded fund seeking to outperform its benchmark by investing exclusively in bonds that fund measurable environmental and social projects. Backed by Nuveen’s long history in responsible investing, the fund adheres strictly to recognized global standards such as the IFC Operating Principles. NUIB also specifically targets “use of proceeds” bonds for which the capital is deployed for projects offering quantifiable positive environmental or social results. The exchange-traded fund is managed according to the IFC Operating Principles for Impact Management (OPIM). Its management team has been recognized for its best-in-class practices for four years in a row by BlueMark, which is a provider of impact investing verification services.Holdings in Nuveen's New Bond ETFAs of mid-September, NUIB’s top positions include international development bonds, U.S. Treasury notes, and corporate bonds from entities such as MasterCard and Topaz Solar. NUIB, which issues monthly distributions and has a 0.37% expense ratio, lists on Nasdaq. Nuveen is owned by retirement and investment solutions provider TIAA, which has practiced socially responsible investing for half a century. However, Nuveen also has its own record in the space. It established its “direct and measurable impact approach” in 2007, well before its 2017 acquisition by TIAA. See more: The Catalysts Behind Small Cap Outperformance NUIB joins Nuveen’s extensive exchange-traded fund offering. That lineup includes 28 exchange-traded funds listed in the United States, with roughly $19 billion in combined assets. For more news, information, and analysis, visit the Equity ETF Content Hub.

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