Inflation has risen to its highest point in decades as the world recovers from the coronavirus pandemic. This is due to a combination of easy monetary policies, massive fiscal stimulus and rising consumer spending.
The webcast will be available soon Inflation: Preparing Portfolios for a Shifting EnvironmentAlex Graf, ETF Specialist in Institutional and ESG Models, Nuveen and Brian Griggs Managing Director, Portfolio Strategyt, Nuveen will discuss how investors can prepare ETFs to protect themselves against inflations risks.
Investors, for instance, can look at the Nuveen ESG Dividend ETF – Cboe: NUDV. NUDV is the industry’s first ESG dividend ETF to include low carbon criteria. The fund focuses primarily on providing yield and seeks the tracking of an ESG-enhanced, custom index created by Nuveens Responsible Investing.
In accordance with Nuveens 10 ESG-oriented index tracking ETFs, the underlying NUDV holdings will be rebalanced every quarter. This will include a customized set ESG rating, controversial businesses involvement, fossil fuel reserves and carbon emissions levels. This is a key differentiator in Nuveens custom methodology.
The Nuveen Enhanced Yield 1-5 year U.S. Aggregate Bond ETF (NYSEArca : NUSA).This index attempts to reflect the performance and trends of the BofA Merrill Lynch US Broad Bond Index Enhanced Yield 1-5 Years US Broad Bond Index. It is a modified version the more well-known BofA Merrill Lynch US Broad Market Index 1-5 Years US Broad Market Index.
The Enhanced Index does away with market capitalization and instead assigns components to various categories based on asset type, sector, credit quality and maturity. Smart beta indexing uses a rules-based approach to assign higher weights to categories with higher yields, while still maintaining credit quality and risk at the same level as the Base Index.
The Other Factors are: NuShares Short-Term ETF (BATS : NURE).This index attempts to reflect the performance Dow Jones U.S. Select Short-Term REIT Index is a group of real estate investment trusts that invest only in residential or commercial real property with a shorter lease term than other REITs.
NURE focuses primarily on REITs with short term lease agreements. These may be less volatile and more sensitive to interest-rate fluctuations than longer-term REITs. These short-term REITs can be a good option for income-minded investors who want to generate yield in a rising rate environment. Short-term contracts allow businesses the flexibility to adjust to changing market conditions and to revise their prices. The REITs structure allows the majority of revenue to be distributed as income for shareholders. This could lead to more returns for investors.
Financial advisors interested in learning more on investment portfolio strategies can register here for the Thursday, March 24, webcast.