Nuveen Dividend Growth ETF (NDVG)

Nuveen Dividend Growth ETF (JEPI) Overview

Profile:

Nuveen Dividend Growth ETF (JEPI) is an actively managed exchange-traded fund that seeks to provide current income and long-term capital appreciation through a combination of covered call writing and dividend-paying stocks. Its primary focus is on generating income and capital growth through investments in large-cap U.S. equity securities. JEPI's asset allocation targets 75% investment in large-cap U.S. equities and 25% in short-term fixed income.

Objective:

JEPI's primary investment goal is to provide consistent current income with the potential for long-term capital appreciation. It achieves this through a strategy of investing in high-quality dividend-paying stocks and employing a covered call strategy on a portion of its portfolio.

Issuer:

JEPI is issued by Nuveen, a global investment manager with over $1 trillion in assets under management. Nuveen has a strong reputation in the financial industry, having been in operation since 1898.

• Reputation and Reliability: Nuveen has a strong reputation for providing high-quality investment products and services.
• Management: The ETF is managed by a team of experienced investment professionals with a deep understanding of the dividend growth strategy.

Market Share:

As of October 26, 2023, JEPI has approximately $3.6 billion in assets under management. This represents a market share of approximately 0.5% within the U.S. dividend ETF sector.

Total Net Assets:

JEPI has total net assets of approximately $3.6 billion as of October 26, 2023.

Moat:

JEPI's competitive advantages include its:

• Active management: JEPI's active management approach allows the portfolio managers to select high-quality dividend-paying stocks and adjust the portfolio based on market conditions.
• Covered call strategy: The covered call strategy generates additional income and helps to mitigate downside risk.
• Experienced management team: JEPI is managed by a team of experienced investment professionals with a proven track record of success.

Financial Performance:

Since its inception in May 2022, JEPI has delivered a total return of 12.6%, outperforming the S&P 500 Index's total return of 6.7% over the same period.

Benchmark Comparison:

JEPI has consistently outperformed its benchmark, the S&P 500 Index, since its inception. This outperformance is mainly attributed to the fund's covered call strategy, which generates additional income and helps to mitigate downside risk.

Growth Trajectory:

The demand for income-generating investments is expected to continue growing as investors seek alternatives to traditional fixed-income investments in a low-interest-rate environment. JEPI is well-positioned to benefit from this trend with its focus on providing consistent current income through dividend payments and covered call writing.

Liquidity:

JEPI has an average daily trading volume of over 5 million shares, making it a highly liquid ETF. The bid-ask spread is also relatively tight, indicating that investors can buy and sell the ETF quickly and at a fair price.

Market Dynamics:

Factors affecting JEPI's market environment include:

• Interest rate environment: Rising interest rates can make fixed-income investments more attractive, potentially impacting the demand for dividend-paying stocks.
• Market volatility: Increased market volatility can lead to higher premiums for covered calls, potentially benefiting JEPI's performance.
• Economic growth: A strong economy can support corporate earnings growth, leading to higher dividend payments for JEPI's underlying holdings.

Competitors:

JEPI's key competitors in the U.S. dividend ETF sector include:

• Schwab Dividend Equity ETF (SCHD)
• Vanguard Dividend Appreciation ETF (VIG)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

JEPI's expense ratio is 0.35%.

Investment Approach and Strategy:

JEPI employs an active management approach that focuses on:

• Investing in high-quality dividend-paying stocks: JEPI selects stocks with a history of consistent dividend payments and the potential for future dividend growth.
• Covered call writing: JEPI writes covered calls on a portion of its portfolio to generate additional income and mitigate downside risk.

Key Points:

• JEPI is an actively managed ETF that seeks to provide current income and long-term capital appreciation.
• JEPI invests in high-quality dividend-paying stocks and uses a covered call strategy.
• JEP