What are the best Nuveen ETFs?
7 min read
By Beqa Bumbeishvili, ETF Insider

What are the best Nuveen ETFs?

Exchange-Traded Funds (ETFs) have become increasingly popular investment vehicles, offering investors exposure to a diverse range of assets. Nuveen is a well-known issuer of ETFs, offering a variety of options to suit different investment goals and risk tolerances. In this article, we will explore some of the best Nuveen ETFs available in the market today, comparing them to similar ETFs and highlighting their unique features.

Nuveen Enhanced Yield 1-5 Year U.S. Aggregate Bond ETF (NUAG)

The Nuveen Enhanced Yield 1-5 Year U.S. Aggregate Bond ETF (NUAG) is an excellent option for investors seeking fixed income exposure with a shorter duration. This ETF aims to provide higher yield potential than traditional U.S. aggregate bond funds while maintaining a focus on risk management. NUAG employs an actively managed approach to bond selection, seeking to enhance yield through various strategies such as sector rotation and credit risk management.

Compared to similar ETFs in the market, such as the iShares 1-3 Year Credit Bond ETF (CSJ) and the SPDR Portfolio Short Term Corporate Bond ETF (SPSB), NUAG stands out for its active management approach. This allows NUAG to potentially capture additional yield and navigate changing market conditions more effectively. Investors looking for a short-term bond ETF with an emphasis on yield enhancement may find NUAG to be a suitable choice.

Nuveen ESG Small-Cap ETF (NUSC)

For investors who prioritize environmental, social, and governance (ESG) factors, the Nuveen ESG Small-Cap ETF (NUSC) offers exposure to small-cap companies that meet specific ESG criteria. NUSC tracks the performance of the TIAA ESG Small-Cap Index, which includes companies with strong ESG profiles relative to their industry peers. This ETF provides a way to align investments with sustainability goals without sacrificing potential returns.

When comparing NUSC to other ESG-focused small-cap ETFs, such as the iShares ESG Aware MSCI USA Small-Cap ETF (ESML) and the Xtrackers MSCI USA ESG Leaders Equity ETF (USSG), NUSC differentiates itself through its specific focus on small-cap companies. This may offer greater exposure to companies with higher growth potential. Investors seeking both small-cap exposure and ESG integration could consider NUSC as a suitable option.

Nuveen ETF,NUAG,NUSC,QQQX,NURE,REET,KBWY overlap What are the best Nuveen ETFs?Nuveen ETF,NUAG,NUSC,QQQX,NURE,REET,KBWY overlap What are the best Nuveen ETFs?

Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)

The Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) is a unique ETF that combines the growth potential of the Nasdaq 100 Index with an options overlay strategy. QQQX aims to provide enhanced income and risk-adjusted returns by writing (selling) covered call options on a portion of its underlying Nasdaq 100 holdings. This strategy allows investors to participate in the market's upside potential while potentially generating additional income from the options premiums.

Compared to other Nasdaq 100 ETFs, such as the Invesco QQQ Trust (QQQ) and the ProShares UltraPro QQQ (TQQQ), QQQX stands out for its options overlay strategy. This strategy introduces an additional income stream but may also cap the ETF's upside potential during periods of strong market performance. Investors seeking potential income generation from their Nasdaq 100 exposure could consider QQQX as a viable option.

Nuveen Short-Term REIT ETF (NURE)

Real Estate Investment Trusts (REITs) offer investors the opportunity to gain exposure to the real estate sector without the need for direct property ownership. The Nuveen Short-Term REIT ETF (NURE) focuses on providing investors with short-term exposure to U.S. equity REITs. This ETF seeks to generate attractive income potential with lower interest rate sensitivity compared to longer-term REIT funds.

When comparing NURE to other short-term REIT ETFs like the iShares Short-Term REIT ETF (REET) and the Invesco KBW Premium Yield Equity REIT ETF (KBWY), NURE distinguishes itself through its specific focus on short-term holdings. This focus may provide investors with more stability and less interest rate risk during uncertain market environments. Investors looking for a short-term REIT ETF with a focus on income generation and reduced interest rate sensitivity may find NURE to be a suitable choice.

Conclusion

Nuveen offers a range of ETFs catering to various investment objectives and strategies. The Nuveen Enhanced Yield 1-5 Year U.S. Aggregate Bond ETF (NUAG), Nuveen ESG Small-Cap ETF (NUSC), Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX), and Nuveen Short-Term REIT ETF (NURE) are among the best Nuveen ETFs available in the market today. These ETFs offer unique features and investment approaches that may align with specific investor preferences and goals.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The selection of ETFs should be based on individual investment objectives and risk tolerance. Investors are encouraged to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

Sources:

Nuveen (https://www.nuveen.com)
Investopedia: Nuveen Enhanced Yield 1-5 Year U.S. Aggregate Bond ETF (NUAG) (https://www.investopedia.com/articles/investing/051216/introduction-nuveen-enhanced-yield-15-year-us-aggregate-bond-etf-nuag.asp)
Investopedia: Nuveen ESG Small-Cap ETF (NUSC) (https://www.investopedia.com/articles/etfs-mutual-funds/121915/how-nuveen-building-impact-etf-nusc-works.asp)
Investopedia: Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) (https://www.investopedia.com/nuveen-nasdaq-100-dynamic-overwrite-fund-qqqx-5185499)
Investopedia: Nuveen Short-Term REIT ETF (NURE) (https://www.investopedia.com/nuveen-shortterm-reit-etf-nure-5185497)

Note: The ETFs mentioned in this article are for illustrative purposes only and do not constitute a recommendation.

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FAQ

  • What is Nuveen?

    Nuveen is an investment management firm that offers a wide range of financial products and services, including exchange-traded funds (ETFs).

  • What are ETFs?

    ETFs, or exchange-traded funds, are investment funds that trade on stock exchanges similar to individual stocks. They are designed to track the performance of a specific index, sector, commodity, or asset class.

  • What are the advantages of investing in ETFs?

    Investing in ETFs offers several advantages, including diversification, liquidity, lower expense ratios compared to mutual funds, and the ability to trade throughout the day at market prices.

  • How can I determine the best Nuveen ETFs?

    The best Nuveen ETFs for you depend on your investment goals, risk tolerance, and investment strategy. Factors to consider include the ETF's underlying index, performance track record, expense ratio, assets under management, and investment focus.

  • What are some popular Nuveen ETFs?

    Nuveen offers a variety of ETFs covering different asset classes and investment themes. Some popular Nuveen ETFs include NuShares ESG Large-Cap Growth ETF (NULG), NuShares ESG Small-Cap ETF (NUSC), NuShares ESG International Developed Markets Equity ETF (NUDM), and Nuveen Short-Term REIT ETF (NURE).