Nuveen Core Plus Bond ETF (NCPB)

Nuveen Core Plus Bond ETF (NUPLUS)

Profile:

Nuveen Core Plus Bond ETF (NUPLUS) is an actively managed fixed income ETF that seeks to maximize total return while emphasizing income. It invests primarily in investment-grade corporate bonds and other fixed-income securities, with a focus on exceeding the returns of the Barclays US Aggregate Bond Index.

Objective:

The primary investment goal of NUPLUS is to provide investors with a high level of current income and long-term capital appreciation.

Issuer:

Nuveen is a global investment manager with over $1 trillion in assets under management. It is a subsidiary of TIAA, a leading financial services organization. Nuveen has a strong reputation in the investment management industry, with a long track record of success.

Market Share:

NUPLUS has a market share of approximately 0.2% of the actively managed fixed income ETF market.

Total Net Assets:

As of November 13, 2023, NUPLUS has total net assets of approximately $1.4 billion.

Moat:

NUPLUS has a few competitive advantages:

• Active Management: The ETF is actively managed by a team of experienced portfolio managers who use their expertise to select bonds with the potential for attractive returns.
• Focus on Income: NUPLUS has a high allocation to investment-grade corporate bonds, which typically offer higher yields than government bonds.
• Low Expense Ratio: The ETF has an expense ratio of 0.35%, which is lower than the average expense ratio for actively managed fixed income ETFs.

Financial Performance:

Since its inception in 2017, NUPLUS has generated an annualized return of 4.2%, outperforming the Barclays US Aggregate Bond Index by 0.6% per year.

Growth Trajectory:

The fixed income ETF market is expected to continue growing in the coming years as investors seek income-generating investments in a low-interest-rate environment.

Liquidity:

NUPLUS has an average daily trading volume of approximately 50,000 shares, making it a relatively liquid ETF. The bid-ask spread is typically around 0.10%.

Market Dynamics:

Factors affecting NUPLUS's market environment include:

• Interest rate movements: Rising interest rates can negatively impact bond prices.
• Economic growth: A strong economy can lead to higher corporate profits and, therefore, higher bond yields.
• Inflation: Inflation can erode the purchasing power of fixed income investments.

Competitors:

The main competitors of NUPLUS include:

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• SPDR Bloomberg Barclays Short Term Treasury ETF (BIL)

Expense Ratio:

The expense ratio of NUPLUS is 0.35%.

Investment Approach and Strategy:

NUPLUS invests in a diversified portfolio of investment-grade corporate bonds, government bonds, and other fixed-income securities. The portfolio managers use a bottom-up approach to security selection, focusing on identifying bonds with attractive yields and creditworthiness.

Key Points:

• Actively managed fixed income ETF
• Focus on maximizing total return while emphasizing income
• Invests primarily in investment-grade corporate bonds and other fixed-income securities
• Outperformed the Barclays US Aggregate Bond Index since inception
• Relatively liquid ETF with a low expense ratio

Risks:

The main risks associated with NUPLUS include:

• Interest rate risk: Rising interest rates can lead to a decline in the value of the ETF's holdings.
• Credit risk: The ETF invests in corporate bonds, which are subject to the risk of default.
• Market risk: The ETF's value can fluctuate with changes in the overall market.

Who Should Consider Investing:

NUPLUS is suitable for investors seeking a high level of current income and long-term capital appreciation from a diversified portfolio of fixed-income securities. It is appropriate for investors with a moderate risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of NUPLUS's fundamentals, we rate the ETF 8 out of 10. This rating considers the factors mentioned above, including financial health, market position, and future prospects. NUPLUS has a strong track record of outperformance, a competitive expense ratio, and is well-positioned to benefit from the continued growth of the fixed income ETF market.

Resources and Disclaimers:

• Nuveen Core Plus Bond ETF website: https://www.nuveen.com/en-us/individual/etfs/fund/nuveen-core-plus-bond-etf---nuplus
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/nuplus/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.