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Nuveen Eyes ETF Comeback


Nuveen Investments is mulling a return to the exchange traded funds landscape after scrapping its ETF effort in 2002.

A filing with the Securities and Exchange Commission from last week details Nuveen’s possible effort to return to the ETF space, a business that has boomed to over $2 trillion in assets under management.

“But unlike some of its peers that are joining the stampede for the first time, Nuveen was an early pioneer of the structure. It first asked for permission to offer index-based ETFs in 2000, at the time developing proposals for what could have been the very first bond ETFs,” reports Trevor Hunnicutt for InvestmentNews.

Last week’s SEC filing isn’t the first sign Nuveen has been considering returning to ETFs. In December, the company said its Nuveen Commodities Asset Management unit plans to convert two of its commodities mutual funds into exchange traded funds.

Nuveen Commodities Asset Management is looking to convert the Nuveen Diversified Commodity Fund (CFD) and the Nuveen Long/Short Commodity Total Return Fund (CTF) into open-end ETFs, according to a statement issued by Nuveen.

“The funds are currently structured as actively managed closed-end commodity pools. After the conversion, the funds will remain actively managed commodity pools, but they will adopt an open-end ETF structure,” said Nuveen in the statement. “The funds are not currently, and after the conversion will not be, mutual funds or any other type of investment company within the meaning of the Investment Company Act of 1940.” [Nuveen to Convert Two Commodities Funds to ETFs]

A vote on the conversion of those mutual funds to the ETF structure could come as soon as the end of this month.

Nuveen has not been completely absent from the ETF business over the past 13 years. The firm partners with State Street’s (STT) State Street Global Advisors unit on at least seven fixed income ETFs, including the SPDR Nuveen S&P High Yield Municipal Bond ETF (HYMB) , SPDR Nuveen Barclays Build America Bond ETF (BABS) and the SPDR Nuveen Barclays Municipal Bond ETF (TFI) .

ETF Trends editorial team contributed to this post.

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