Five New ESG ETFs launched by Nuveen

Nuveen, an operating division of TIAA Global Asset Management begun trading Five New ESG ETFs, the NuShares ESG Large-Cap Value ETF (Bats: NULV), the NuShares ESG Large-Cap Growth ETF (Bats: NULG) the NuShares ESG Mid-Cap Value ETF (Bats: NUMV), the NuShares ESG Mid-Cap Growth ETF (Bats: NUMG) and the NuShares ESG Small-Cap ETF (Bats: NUSC) on Wednesday, December 14, 2016. Here is a synopsis of the new ETFs:

1.
FUND INFORMATION:

Symbol: NULV Exchange: BATS
Name: NuShares ESG Large-Cap Value ETF Net Expense Ratio: 0.35%

 

FUND OBJECTIVE:
The NuShares ESG Large-Cap Value ETF seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Large-Cap Value Index.

REFERENCE INDEX:
The TIAA ESG USA Large-Cap Value Index is comprised of equity securities issued by large capitalization companies listed on U.S. exchanges that meet certain environmental, social, and governance (ESG) criteria.
The Index selects from the securities included in the MSCI USA Value Index (Base Index), which generally consists of large- and mid-capitalization U.S. equity securities that exhibit overall value style characteristics based on 3 variables: book value to price, 12-month forward earnings to price, and dividend yield. MSCI Inc., is the index provider for the Index and the Base Index. The Index and the Base Index are owned, calculated and controlled by MSCI, in its sole discretion. Neither the sub-adviser nor its affiliates has any discretion to select Index components or change the Index methodology.

Index Top Holdings (11/30/16):

Microsoft Corp 5.7%
JPMorgan Chase & Co 4.4%
Procter & Gamble Co 3.2%
Verizon Communications 3.2%
Merck & Co 2.9%
Intel Corp 2.8%
Coca Cola (The) 2.8%
Schlumberger 2.5%
PNC Finl Services Group 2.1%
American Intl Group 2.0%

 

 

Useful Links:
NULV Home Page

 

2.
FUND INFORMATION:

Symbol: NULG  Exchange: BATS
Name: NuShares ESG Large-Cap Growth ETF  Net Expense Ratio: 0.35%

 

 

FUND OBJECTIVE:
The NuShares ESG Large-Cap Growth ETF seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Large-Cap Growth Index.

REFERENCE INDEX:
The TIAA ESG USA Large-Cap Growth Index is comprised of equity securities issued by large capitalization companies listed on U.S. exchanges that meet certain environmental, social, and governance (ESG) criteria.
The Index selects from the securities included in the MSCI USA Growth Index (Base Index), which generally consists of large- and mid-capitalization U.S. equity securities that exhibit overall growth style characteristics based on 5 variables: long-term forward earnings per share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend. MSCI Inc. is the index provider for the Index and the Base Index.

Index Top Holdings (11/30/16):

Apple 7.2%
Alphabet C 3.0%
Alphabet A 2.9%
Disney (Walt) 2.9%
Oracle Corp 2.5%
Celgene Corp 2.3%
3M Co 2.2%
Amgen 2.2%
Starbucks Corp 2.1%
Walgreens Boots Alliance 2.1%

 

 

Useful Links:
NULG Home Page

 

3.
FUND INFORMATION:

Symbol: NUMV Exchange: BATS
Name: NuShares ESG Mid-Cap Value ETF Net Expense Ratio: 0.40%

 

 

FUND OBJECTIVE:
The NuShares ESG Mid-Cap Value ETF seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Mid-Cap Value Index.

REFERENCE INDEX:
The TIAA ESG USA Mid-Cap Value Index is comprised of equity securities issued by mid-capitalization companies listed on U.S. exchanges that meet certain environmental, social, and governance (ESG) criteria. The Index selects from the securities included in the MSCI USA Mid-Cap Value Index (Base Index), which generally consists of mid-capitalization U.S. equity securities that exhibit overall value style characteristics based on 3 variables:
book value to price, 12-month forward earnings to price, and dividend yield. MSCI Inc. is the index provider for the Index and the Base Index. The Index and the Base Index are owned, calculated and controlled by MSCI, in its sole discretion. Neither the sub-adviser nor its affiliates has any discretion to select Index components or change the Index methodology.

Index Top Holdings (11/30/16):  

Hartford Financial Svcs 2.7%
Parker Hannifin Corp 2.7%
Lam Research Corp 2.5%
Eversource Energy 2.3%
Celanese Corp 2.3%
Microchip Technology 2.3%
ONEOK 2.2%
Westrock Company 2.2%
Rockwell Automation 2.2%
Kohls Corp 2.1%

 

 

Useful Links:
NUMV Home Page

 

4.
FUND INFORMATION:

Symbol: NUMG  Exchange: BATS
Name: NuShares ESG Mid-Cap Growth ETF Net Expense Ratio: 0.40%

 

FUND OBJECTIVE:
The NuShares ESG Mid-Cap Growth ETF seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Mid-Cap Growth Index.

REFERENCE INDEX:
The TIAA ESG USA Mid-Cap Growth Index is comprised of equity securities issued by mid-capitalization companies listed on U.S. exchanges that meet certain environmental, social, and governance (ESG) criteria.
The Index selects from the securities included in the MSCI USA Mid-Cap Growth Index (Base Index), which generally consists of mid-capitalization U.S. equity securities that exhibit overall growth style characteristics based on 5 variables: long-term forward earnings per share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend. MSCI Inc. is the index provider for the Index and the Base Index.

Index Top Holdings (11/30/16):

Nvidia  4.8%
Amphenol Corp  2.6%
Red Hat  2.2%
Servicenow  2.1%
Ch Robinson Worldwide  2.0%
Biomarin Pharmaceutical  2.0%
Idexx Laboratories  1.9%
Carmax  1.9%
Rockwell Collins  1.9%
Manpowergroup  1.9%

 

 

Useful Links:
NUMG Home Page

5.
FUND INFORMATION:

Symbol: NUSC Exchange: BATS
Name: NuShares ESG Small-Cap ETF Net Expense Ratio: 0.40%

 

FUND OBJECTIVE:
The NuShares ESG Small-Cap ETF seeks to track the investment results, before fees and expenses, of the TIAA ESG USA Small-Cap Index.

REFERENCE INDEX:
The TIAA ESG USA Small-Cap Index is comprised of equity securities issued by small-capitalization companies listed on U.S. exchanges that meet certain environmental, social, and governance (ESG) criteria.
The Index selects from the securities included in the MSCI USA Small Cap Index (Base Index), which generally consists of equity securities that comprise the small-cap segment of the U.S. market. MSCI Inc., is the index provider for the Index and the Base Index. The Index and the Base Index are owned, calculated and controlled by MSCI, in its sole discretion. Neither the sub-adviser nor its affiliates has any discretion to select Index components or change the Index methodology.

Fund Top Holdings (11/30/16):

Reinsurance Grp America 1.08%
Aqua America 0.86%
Ryder System 0.63%
WGL Holdings 0.60%
Sonoco Products Co 0.59%
Southwest Gas Corp 0.57%
Macquarie Infra Corp 0.57%
First American Financial 0.54%
Quanta Services 0.51%
Aspen Insurance Holdings 0.50%

 

 

Useful Links:
NUSC Home Page

Indices’ ESG Criteria:
Each of the 5 Indices identifies equity securities from its Base Index that satisfy certain ESG criteria, based on ESG performance data collected by MSCI ESG Research, Inc. ESG performance is measured on an industry-specific basis, with assessment categories varying by industry. Environmental assessment categories can include a company’s impact on climate change, natural resource use, and waste management and emission management. Social evaluation categories can include a company’s relations with employees and suppliers, product safety and sourcing practices. Governance assessment categories can include a company’s corporate governance practices and business ethics. The ESG criteria also consider how well a company adheres to national and international laws and regulations as well as commonly accepted global norms related to ESG matters. The Index generally excludes companies with significant activities in certain controversial businesses, including those involving alcohol, tobacco, military weapons, firearms, nuclear power and gambling, among others.

Companies that meet the ESG criteria are then ranked within their respective sectors based on their ESG performance score. The highest ranked companies in each sector are identified as eligible for inclusion in the Index until such point that the aggregate weight of companies in the sector reaches 50% of the market cap of such sector in the Base Index. For example, if the market capitalization of all consumer discretionary sector companies included in the Base Index totals $200 million, then the Index would screen these consumer discretionary sector companies, rank them based on ESG performance scores, and add the highest scoring companies to the Index until such point that their combined total market capitalization reaches $100 million. Companies otherwise eligible for inclusion in the Index that exceed certain carbon-based ownership and emissions thresholds are excluded from the Index. Once the universe of eligible Index components is established, MSCI optimizes the weightings of individual components to approximate the sector weightings of the Base Index, within certain constraints established by the Index.

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