 NuShares
ESG Emerging Markets Equity ETF (NUEM) is an exchange-traded fund
(ETF) that invests in companies from emerging market countries that
are selected based on their environmental, social, and governance
(ESG) characteristics. The fund is managed by Nuveen Asset Management.
NUEM seeks to track the performance of the TIAA ESG Emerging
Markets Equity Index, which is designed to provide exposure to
emerging market companies with favorable ESG ratings relative to their
peers. The index methodology considers ESG factors as well as
financial metrics in the stock selection process, with the aim of
constructing a portfolio that represents the ESG characteristics of
the parent index, the MSCI Emerging Markets Index.
The fund
invests in a diversified portfolio of emerging market companies across
various sectors, including consumer goods, financials, technology, and
healthcare. The geographic allocation of the portfolio is determined
by the MSCI Emerging Markets Index, with the largest weightings in
China, Taiwan, and South Korea.
NUEM charges an expense ratio
of 0.45%, which is competitive with other ESG-focused ETFs in the
emerging markets space. As of September 2021, the fund has around $410
million in assets under management and has delivered a total return of
approximately 11.5% over the past year.
Overall, NUEM provides
investors with exposure to emerging market equities that score well on
ESG criteria while also providing broad-based exposure to the emerging
markets asset class. As with any investment, potential investors
should carefully consider the fund's investment objectives, risks, and
expenses before making a decision to invest.
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