Nuveen, the global investment management company with over $1 trillion in assets under supervision, announced it is expanding its suite of ESG ETFs to offer exposure to high yield corporate bonds. The information was released by the company in a press release a few hours ago.
According to the report, the Nuveen launched its new ESG High Yield Corporate Bond ETF (NUHY) to offer exposure to high yield corporate bonds. The ETF adheres to predetermined environmental, social and governance (ESG) factors, controversial business involvement, and low carbon criteria.
This is the first high yield corporate bond ESG ETF and it will start trading today on the New York Stock Exchange (NYSE).
Jordan Farris, the managing director and head of ETFs at Nuveen, commented:
“The Nuveen ESG High Yield Corporate Bond ETF seeks the dual objectives of offering investors competitive income while remaining consistent with environmental, social, and governance values.”
The Nuveen ESG High Yield Corporate Bond ETF complements the existing list of products that Nuveen is offering to the market.
The new solution has been developed in order to meet the demand of investors to have higher income in a macro-environment in which low-yield products are the norm. In addition to it, the new services will increase investors’ portfolio diversification.
Furthermore, the new ETF aims at providing investment results before fees and expenses that are similar to the Bloomberg Barclays MSCI US High Yield Very Liquid ESG Select Index.
Moreover, it will be providing larger exposure to the below investment grade taxable fixed income market and it will adhere to ESG-focused criteria designed by MSCI and the Responsible Investing team behind Nuveen.
With the new solutions, traders will have the possibility to increase their income in a moment of low-yield products. At the same time, it will help investors have a more diversified portfolio in the current macro-context.
Featured image via Nuveen Youtube