UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-23161
NuShares ETF Trust
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Christopher M. Rohrbacher
Vice President and Secretary
333 West Wacker Drive, Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: June 30, 2019
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
Funds
Fund Name | Listing Exchange | Ticker Symbol | |||
Nuveen Short-Term REIT ETF | Cboe BZX Exchange, Inc. | NURE |
Percentages of Distributions | Per Share Amounts | ||||||||
Ticker | Net Investment Income | Realized Gains | Return of Capital1 | Distributions | Net Investment Income | Realized Gains | Return of Capital1 | ||
NURE | 79.90% | 16.40% | 3.70% | $0.5067 | $0.4049 | $0.0831 | $0.0187 |
Cumulative | Average Annual | |||
6-Month | 1-Year | Since Inception | ||
NURE at NAV | 18.10% | 10.59% | 10.13% | |
NURE at Market Price | 18.40% | 10.55% | 10.14% | |
Dow Jones U.S. Select Short-Term REIT Index | 18.36% | 10.85% | 10.45% | |
Dow Jones U.S. Select REIT Index | 16.67% | 9.75% | 6.30% |
Expense Ratio | 0.35% |
Fund Allocation (% of net assets) | |
Real Estate Investment Trust Common Stocks | 99.4% |
Other Assets Less Liabilities | 0.6% |
Net Assets | 100% |
Portfolio Composition - REITs (% of net assets) | |
Apartments | 47.0% |
Hotels | 25.6% |
Manufactured Homes | 10.0% |
Self-Storage | 16.8% |
Other Assets Less Liabilities | 0.6% |
Net Assets | 100% |
Top Five REIT Holdings (% of net assets) | |
Mid-America Apartment Communities Inc. | 5.1% |
Sun Communities Inc. | 5.0% |
Invitation Homes Inc. | 5.0% |
Host Hotels & Resorts Inc. | 5.0% |
Equity LifeStyle Properties Inc. | 5.0% |
Actual Performance | |
Beginning Account Value | $1,000.00 |
Ending Account Value | $1,181.00 |
Expenses Incurred During Period | $1.89 |
Hypothetical Performance (5% annualized return before expenses) | |
Beginning Account Value | $1,000.00 |
Ending Account Value | $1,023.06 |
Expenses Incurred During the Period | $1.76 |
Shares | Description (1) | Value | ||||
LONG-TERM INVESTMENTS – 99.4% | ||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 99.4% | ||||||
Apartments – 47.0% | ||||||
41,529 | American Campus Communities Inc. | $1,916,979 | ||||
78,722 | American Homes 4 Rent, Class A | 1,913,732 | ||||
45,027 | Apartment Investment & Management Co, Class A | 2,256,753 | ||||
13,088 | AvalonBay Communities Inc. | 2,659,220 | ||||
25,508 | Camden Property Trust | 2,662,780 | ||||
34,925 | Equity Residential | 2,651,506 | ||||
9,076 | Essex Property Trust Inc. | 2,649,557 | ||||
14,868 | Front Yard Residential Corp | 181,687 | ||||
27,378 | Independence Realty Trust Inc. | 316,763 | ||||
100,552 | Invitation Homes Inc. | 2,687,755 | ||||
23,086 | Mid-America Apartment Communities Inc. | 2,718,607 | ||||
58,813 | UDR Inc. | 2,640,116 | ||||
Total Apartments | 25,255,455 | |||||
Hotels – 25.6% | ||||||
63,665 | Apple Hospitality REIT Inc. | 1,009,727 | ||||
26,770 | Ashford Hospitality Trust Inc. | 79,507 | ||||
14,196 | Chatham Lodging Trust | 267,879 | ||||
18,384 | Chesapeake Lodging Trust | 522,473 | ||||
11,967 | CorePoint Lodging Inc. | 148,271 | ||||
60,948 | DiamondRock Hospitality Co | 630,202 | ||||
10,997 | Hersha Hospitality Trust | 181,890 | ||||
49,750 | Hospitality Properties Trust | 1,243,750 | ||||
147,146 | Host Hotels & Resorts Inc. | 2,681,000 | ||||
60,988 | Park Hotels & Resorts Inc. | 1,680,829 | ||||
39,523 | Pebblebrook Hotel Trust | 1,113,758 | ||||
52,537 | RLJ Lodging Trust | 932,007 | ||||
15,561 | Ryman Hospitality Properties Inc. | 1,261,842 | ||||
32,024 | Summit Hotel Properties Inc. | 367,315 | ||||
69,173 | Sunstone Hotel Investors Inc. | 948,362 | ||||
34,080 | Xenia Hotels & Resorts Inc. | 710,568 | ||||
Total Hotels | 13,779,380 | |||||
Manufactured Homes – 10.0% | ||||||
22,056 | Equity LifeStyle Properties Inc. | 2,676,275 |
Shares | Description (1) | Value | ||||
Manufactured Homes (continued) | ||||||
21,032 | Sun Communities Inc. | $2,696,092 | ||||
Total Manufactured Homes | 5,372,367 | |||||
Self-Storage – 16.8% | ||||||
57,022 | CubeSmart | 1,906,816 | ||||
24,920 | Extra Space Storage Inc. | 2,644,012 | ||||
14,110 | Life Storage Inc. | 1,341,579 | ||||
17,335 | National Storage Affiliates Trust | 501,675 | ||||
11,209 | Public Storage | 2,669,647 | ||||
Total Self-Storage | 9,063,729 | |||||
Total Long-Term Investments (cost $48,793,358) | 53,470,931 | |||||
Other Assets Less Liabilities – 0.6% | 303,273 | |||||
Net Assets – 100% | $53,774,204 |
For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease. | ||
(1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
REIT | Real Estate Investment Trust |
Assets | |
Long-term investments, at value (cost $48,793,358) | $53,470,931 |
Cash | 46,205 |
Receivable for: | |
Dividends | 296,756 |
Investments sold | 4,302,316 |
Total assets | 58,116,208 |
Liabilities | |
Payable for shares redeemed | 4,326,015 |
Accrued expenses: | |
Management fees | 15,484 |
Professional Fees | 174 |
Trustees Fees | 331 |
Total liabilities | 4,342,004 |
Net assets | $53,774,204 |
Shares outstanding | 1,850,000 |
Net asset value ("NAV") per share | $29.07 |
Net assets consist of: | |
Capital paid-in | $48,012,684 |
Total distributable earnings | 5,761,520 |
Net assets | $53,774,204 |
Authorized shares | Unlimited |
Par value per share | $0.01 |
Investment Income | $862,585 |
Expenses | |
Management fees | 91,657 |
Professional fees | 545 |
Trustees fees | 779 |
Total expenses | 92,981 |
Net investment income (loss) | 769,604 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 191,415 |
In-kind redemptions | 1,280,192 |
Change in net unrealized appreciation (depreciation) of investments | 5,492,676 |
Net realized and unrealized gain (loss) | 6,964,283 |
Net increase (decrease) in net assets from operations | $7,733,887 |
Six Months Ended 6/30/19 | Year Ended 12/31/18 | |
Operations | ||
Net investment income (loss) | $769,604 | $667,492 |
Net realized gain (loss) from: | ||
Investments | 191,415 | 171,921 |
In-kind redemptions | 1,280,192 | — |
Change in net unrealized appreciation (depreciation) of investments | 5,492,676 | (1,119,043) |
Net increase (decrease) in net assets from operations | 7,733,887 | (279,630) |
Distributions to Shareholders | ||
Dividends | (985,650) | (1,003,720) |
Decrease in net assets from distributions to shareholders | (985,650) | (1,003,720) |
Fund Share Transactions | ||
Proceeds from shares sold | 22,890,615 | 26,011,670 |
Cost of shares redeemed | (7,180,535) | — |
Net increase (decrease) in net assets from Fund share transactions | 15,710,080 | 26,011,670 |
Net increase (decrease) in net assets | 22,458,317 | 24,728,320 |
Net assets at the beginning of period | 31,315,887 | 6,587,567 |
Net assets at the end of period | $53,774,204 | $31,315,887 |
Investment Operations | Less Distributions | ||||||||||
Year Ended December 31, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Return of Capital | Total | Ending NAV | Ending Market Price | |
2019(d) | $25.05 | $0.53 | $4.00 | $4.53 | $(0.51) | $ — | $ — | $(0.51) | $29.07 | $29.07 | |
2018 | 26.35 | 0.82 | (1.10) | (0.28) | (0.95) | (0.07) | — | (1.02) | 25.05 | 24.99 | |
2017 | 25.49 | 0.70 | 1.16 | 1.86 | (0.70) | (0.26) | (0.04) | (1.00) | 26.35 | 26.01 | |
2016(e) | 25.20 | 0.11 | 0.30 | 0.41 | (0.09) | (0.03) | — | (0.12) | 25.49 | 24.94 |
Ratios/Supplemental Data | |||||
Total Return | Ratios to Average Net Assets | ||||
Based on NAV(b) | Based on Market Price(b) | Ending Net Assets (000) | Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(c) |
18.10% | 18.40% | $53,774 | 0.35%* | 2.92%* | 6% |
(1.05) | 0.01 | 31,316 | 0.35 | 3.05 | 16 |
7.45 | 8.41 | 6,588 | 0.35 | 2.70 | 20 |
1.65 | (0.54) | 5,098 | 0.35* | 0.45*** | 0** |
(a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
(b) | Total Return Based on NAV reflects the change in NAV over the period, including the assumed reinvestment of distributions, if any, at NAV on each ex-dividend payment date during the period. Total Return Based on Market Price reflects the change in the market price per share over the period, including the assumed reinvestment of distributions, if any, at the ending market price per share on each ex-dividend payment date during the period. Total returns are not annualized. |
(c) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 - Investment Transactions) divided by the average long-term market value during the period. Portfolio Turnover Rate excludes securities received or delivered as a result of processing in-kind creations or redemptions of Fund shares (as disclosed in Note 4 - Fund Shares). |
(d) | For the six months ended June 30, 2019. |
(e) | For the period December 19, 2016 (commencement of operations) through December 31, 2016. |
* | Annualized. |
** | Rounds to less than 1%. |
*** | The Net Investment Income (Loss) Ratio to Average Net Assets has not been annualized for the period December 19, 2016 (commencement of operations) through December 31, 2016. Annualizing this ratio would not provide meaningful investment performance for the Fund as it only reflects 13 days in the period since commencement of operations. |
Level 1 | Level 2 | Level 3 | Total | |
Long-Term Investments*: | ||||
Real Estate Investment Trust Common Stocks | $53,470,931 | $ — | $ — | $53,470,931 |
* | Refer to the Fund's Portfolio of Investments for industry classifications. |
Six Months Ended 6/30/19 | Year Ended 12/31/18 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | 850,000 | $22,890,615 | 1,000,000 | $26,011,670 | |
Shares redeemed | (250,000) | (7,180,535) | — | — | |
Net increase (decrease) | 600,000 | $15,710,080 | 1,000,000 | $26,011,670 |
Purchases | $3,265,997 |
Sales | 3,339,912 |
In-kind purchases | $22,843,430 |
In-kind sales | 7,148,380 |
Tax cost of investments | $49,133,832 |
Gross unrealized: | |
Appreciation | $5,731,296 |
Depreciation | (1,394,197) |
Net unrealized appreciation (depreciation) of investments | $4,337,099 |
Undistributed net ordinary income1 | $35,326 |
Undistributed net long-term capital gains | 133,534 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Distributions from net ordinary income1 | $993,595 |
Distributions from net long-term capital gains | 10,125 |
Return of capital | — |
1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Inter-Fund Trades | |
Purchases | $276,759 |
Sales | — |
TIAA owned shares | 700,000 |
Six Months Ended June 30, 2019 | Number of Days | % of Total Days | |||
Premium/Discount Range: | |||||
0.00% to 0.25% | 112 | 90.3% | |||
(0.01)% to (0.25)% | 12 | 9.7% | |||
124 | 100% |
• | Fund Improvements and Product Management Initiatives – continuing to proactively manage the Nuveen fund complex as a whole and at the individual fund level with an aim to enhance the shareholder outcomes through, among other things, repositioning funds, merging funds, reviewing and updating investment policies and benchmarks, modifying the composition of certain portfolio management teams and analyzing various data to help devise such improvements; |
• | Capital Initiatives – continuing to invest capital to support new funds with initial capital as well as to facilitate modifications to the strategies or structure of existing funds; |
• | Compliance Program Initiatives – continuing efforts to enhance the compliance program through, among other things, internally integrating various portfolio management teams and aligning compliance support accordingly, completing a comprehensive review of existing policies and procedures and revising such policies and procedures as appropriate, enhancing compliance-related technologies and workflows, and optimizing compliance shared services across the organization and affiliates; |
• | Risk Management and Valuation Services – continuing efforts to strengthen the risk management functions, including through, among other things, enhancing the interaction and reporting between the investment risk management team and various affiliates, increasing the efficiency of risk monitoring performed on the Nuveen funds through improved reporting, continuing to implement risk programs designed to provide a more disciplined and consistent approach to identifying and mitigating operational risks, continuing progress on implementing a liquidity program that complies with the new liquidity regulatory requirements and continuing to oversee the daily valuation process; |
• | Additional Compliance Services – continuing investment of time and resources necessary to develop the compliance policies and procedures and other related tools necessary to meet the various new regulatory requirements affecting the Nuveen funds that have been adopted over recent years; |
• | Government Relations – continuing efforts of various Nuveen teams and affiliates to advocate and communicate their positions with lawmakers and other regulatory bodies on issues that will impact the Nuveen funds; |
• | Business Continuity, Disaster Recovery and Information Services – establishing an information security program to help identify and manage information security risks, periodically testing disaster recovery plans, maintaining and updating business continuity plans and providing reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, incident tracking and other relevant information technology risk-related reports; and |
• | Expanded Dividend Management Services – continuing to expand the services necessary to manage the dividends among the varying types of Nuveen funds that have developed as the Nuveen complex has grown in size and scope. |
Serving Investors for Generations
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this filing.
Item 6. Schedule of Investments.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules13a-15(b) or15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant.
(a)(4) Change in registrant’s independent public accountant. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) NuShares ETF Trust
By | (Signature and Title) | /s/ Christopher M. Rohrbacher | ||||
Christopher M. Rohrbacher Vice President and Secretary |
Date: September 5, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | (Signature and Title) | /s/ Jordan Farris | ||||
Jordan Farris Chief Administrative Officer (principal executive officer) |
Date: September 5, 2019
By | (Signature and Title) | /s/ E. Scott Wickerham | ||||
E. Scott Wickerham Vice President and Controller (principal financial officer) |
Date: September 5, 2019