Nuveen beefed up its roster of exchange-traded funds focused on environmental, social and governance (ESG) factors with Wednesday’s launch of two new products.
The NuShares ESG International Developed Markets Equity ETF (NUDM) and NuShares ESG Emerging Markets Equity ETF (NUEM) track the TIAA ESG International Developed Markets Equity Index and TIAA ESG Emerging Markets Equity Index, respectively.
The indexes were developed by MSCI with additional input by TIAA Investments’ Responsible Investment team. TIAA is Nuveen’s parent company.
Both indexes are composed of equity securities from companies that meet certain ESG criteria ranging from climate change and natural resource usage to product safety and business ethics, among other factors.
NUDM’s largest country weights are Japan (23 percent), the U.K. (17.9 percent) and France (10.7 percent). The top three company holdings are Nestle, Roche Holdings Genuss and Siemens. The fund’s expense ratio is 0.40 percent.
The top three country holdings in NUEM are China (25.7 percent), Korea (15.7 percent) and Taiwan (12.8 percent), with top company positions of Tencent Holdings, Taiwan Semiconductor and Naspers. The fund’s expense ratio is 0.45 percent.
Both ETFs trade on the Bats Exchange Inc., and they begin trading nearly a half-year after NuShares launched its first five ESG-focused ETFs. NuShares offers 10 ETFs in total.