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,” says 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,” says Amy O’Brien, managing director and head of Responsible Investment at TIAA Investments.