#United States #New York #Active ETFs #Nuveen #Municipal Bonds

Nuveen Expands Municipal Bond ETF Offering

Nuveen, a prominent investment manager affiliated with TIAA, has announced the introduction of two new actively-managed exchange-traded funds (ETFs). This marks a significant expansion of its municipal investment platform, which already manages nearly $200 billion in assets.

The new ETFs, named the Nuveen High Yield Municipal Income ETF (ticker: NHYM) and the Nuveen Municipal Income ETF (ticker: NUMI), are designed to provide tax-exempt income while catering specifically to investor demand for both high yield and investment-grade municipal bond strategies. These launches highlight Nuveen's commitment to leveraging its expert knowledge in municipal credit analysis and management.

As municipal bond issuers number over 80,000, with a staggering 1.5 million unique securities, the complexities of investing in this asset class can be daunting. Nuveen’s specialized research and investment management team, which recently received accolades for their performance, aims to identify and capitalize on attractive market opportunities while adeptly navigating potential risks. Their expertise is vital in delivering consistent tax-exempt income to investors.

Key Features of the New ETFs

• - Nuveen High Yield Municipal Income ETF (NHYM): This fund primarily invests in high yield municipal bonds, with opportunities for investment-grade securities. Its goal is to maximize total return through income that is exempt from federal income taxes ultimately benefiting investors seeking extra yield.

- Portfolio Managers: The fund is managed by a seasoned team including Daniel Close, CFA; Stephen Candido, CFA; alongside Steven Hlavin, Michael McElduff, and Nicholas Mueller.

• - Nuveen Municipal Income ETF (NUMI): Aimed at longer-duration municipal bonds, this ETF primarily invests in investment grade securities but also seeks opportunistic investments in lower-rated bonds. This fund aims for similar tax benefits and total return maximization.

- Portfolio Managers: This fund will be overseen by Timothy Ryan, CFA; Paul Brennan, CFA, Michael McElduff, and Nicholas Mueller.

The Bigger Picture

The launch of NHYM and NUMI is strategic, responding to investor appetites for longer-duration and higher-yielding investment options in municipal bonds. Daniel Close, Head of Municipals at Nuveen, emphasized that these strategies are some of their highest-conviction offerings tailored for the increasing demand in the market.

By leveraging their robust credit analysis capabilities, Nuveen showcases its ability not only to adjust exposure to various sectors—like healthcare and infrastructure—but also to delve into projects offering significant return potential via a bottom-up analysis approach.

Nuveen’s dedicated team of over 80 investment professionals averages 22 years of experience in the municipal bond space, making it one of the largest municipal fund managers. This vast experience underpins their leadership in the sector and enhances investors' confidence in navigating the municipal landscape.

The introduction of these ETFs raises Nuveen’s total ETF lineup to 25 funds, managing a significant $10.2 billion. With such diverse options ranging from equities to real estate investment trusts, Nuveen is focused on providing investors with the flexibility needed for customized strategies.

Conclusion

Investors looking to diversify their portfolios in the municipal bond market will find Nuveen's new ETFs an appealing option. With a focus on tax-exempt income and the potential for long-term growth, these offerings set the stage for proactive portfolio management.

For more information about these funds and the extensive services provided by Nuveen, interested investors can visit Nuveen’s website.