Nuveen offers investment-grade bond ETF for ESG Investors

By Jeff Pines

Silver Spring, Md., Oct. 2 – Nuveen’s new investment-grade bond exchange traded fund for environmentally, socially conscious and governance concerned investors started trading on Monday on the NYSE Arca. Chicago-based Nuveen seeded the ETF with $30 million to buy bonds.

The ETF is intended to track the results of the Bloomberg Barclays MSCI US Aggregate ESG Select index, Nuveen said in a press release.

Nuveen is uncertain what the market’s appetite will be for the ETF. Its two big aggregate bond ETFs, AGG and BND, have $86 billion in assets under management between them. “We’re aiming for a fraction of that,” said Martin Kremenstein, senior managing director and head of ETFs at Nuveen.

Nuveen already offers other ESG-related products. The bond ETF will help investors align their full portfolios with their values, Kremenstein said.

Nuveen, the investment management arm of TIAA, managed $929 billion of assets of June 30.

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