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)
Diana R. Gonzalez
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, 2021
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 | 60.20% | 4.50% | 35.40% | $0.2671 | $0.1607 | $0.0119 | $0.0945 |
Total Returns as of June 30, 2021 | ||||||
Cumulative | Average Annual | |||||
Inception Date | 6-Month | 1-Year | Since Inception | Expense Ratios | ||
NURE at NAV | 12/19/16 | 26.91% | 53.57% | 10.80% | 0.35% | |
NURE at Market Price | 12/19/16 | 26.93% | 53.62% | 10.80% | - | |
Dow Jones U.S. Select Short-Term REIT Index | - | 27.18% | 54.32% | 11.16% | - | |
Dow Jones U.S. Select REIT Index | - | 22.94% | 39.98% | 6.75% | - |
Fund Allocation (% of net assets) | |
Real Estate Investment Trust Common Stocks | 99.7% |
Other Assets Less Liabilities | 0.3% |
Net Assets | 100% |
Portfolio Composition - REITs (% of net assets) | |
Apartments | 49.6% |
Hotels | 19.3% |
Manufactured Homes | 9.9% |
Self-Storage | 20.9% |
Other Assets Less Liabilities | 0.3% |
Net Assets | 100% |
Top Five REIT Holdings (% of net assets) | |
Extra Space Storage Inc | 5.2% |
Public Storage | 5.2% |
American Homes 4 Rent, Class A | 5.1% |
Camden Property Trust | 5.1% |
Mid-America Apartment Communities Inc | 5.0% |
Actual Performance | |
Beginning Account Value | $1,000.00 |
Ending Account Value | $1,269.10 |
Expenses Incurred During Period | $ 1.97 |
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 – 99.7% | ||||||
REAL ESTATE INVESTMENT TRUST COMMON STOCKS – 99.7% | ||||||
Apartments – 49.6% | ||||||
33,826 | American Campus Communities Inc | $1,580,351 | ||||
64,347 | American Homes 4 Rent, Class A | 2,499,881 | ||||
38,477 | Apartment Income REIT Corp | 1,824,964 | ||||
36,892 | Apartment Investment and Management Co, Class A | 247,545 | ||||
11,846 | AvalonBay Communities Inc | 2,472,142 | ||||
18,796 | Camden Property Trust | 2,493,665 | ||||
3,190 | Centerspace | 251,691 | ||||
31,464 | Equity Residential | 2,422,728 | ||||
8,053 | Essex Property Trust Inc | 2,415,981 | ||||
25,112 | Independence Realty Trust Inc | 457,792 | ||||
66,667 | Invitation Homes Inc | 2,486,012 | ||||
14,800 | Mid-America Apartment Communities Inc | 2,492,616 | ||||
5,532 | NexPoint Residential Trust Inc | 304,149 | ||||
50,265 | UDR Inc | 2,461,980 | ||||
Total Apartments | 24,411,497 | |||||
Hotels – 19.3% | ||||||
51,033 | Apple Hospitality REIT Inc | 778,763 | ||||
11,952 | Chatham Lodging Trust (2) | 153,822 | ||||
51,537 | DiamondRock Hospitality Co (2) | 499,909 | ||||
8,909 | Hersha Hospitality Trust (2) | 95,861 | ||||
140,183 | Host Hotels & Resorts Inc (2) | 2,395,727 | ||||
58,023 | Park Hotels & Resorts Inc (2) | 1,195,854 | ||||
32,235 | Pebblebrook Hotel Trust | 759,134 | ||||
40,446 | RLJ Lodging Trust | 615,993 | ||||
13,510 | Ryman Hospitality Properties Inc (2) | 1,066,750 | ||||
40,405 | Service Properties Trust | 509,103 | ||||
26,090 | Summit Hotel Properties Inc (2) | 243,420 | ||||
53,043 | Sunstone Hotel Investors Inc (2) | 658,794 | ||||
27,900 | Xenia Hotels & Resorts Inc (2) | 522,567 | ||||
Total Hotels | 9,495,697 | |||||
Manufactured Homes – 9.9% | ||||||
32,829 | Equity LifeStyle Properties Inc | 2,439,523 |
Shares | Description (1) | Value | ||||
Manufactured Homes (continued) | ||||||
14,241 | Sun Communities Inc | $ 2,440,907 | ||||
Total Manufactured Homes | 4,880,430 | |||||
Self-Storage – 20.9% | ||||||
49,442 | CubeSmart | 2,290,153 | ||||
15,745 | Extra Space Storage Inc | 2,579,346 | ||||
18,856 | Life Storage Inc | 2,024,192 | ||||
16,916 | National Storage Affiliates Trust | 855,273 | ||||
8,497 | Public Storage | 2,554,963 | ||||
Total Self-Storage | 10,303,927 | |||||
Total Long-Term Investments (cost $43,774,511) | 49,091,551 | |||||
Other Assets Less Liabilities – 0.3% | 145,642 | |||||
Net Assets – 100% | $ 49,237,193 |
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. | |
(2) | Non-income producing; issuer has not declared an ex-dividend date within the past twelve months. | |
REIT | Real Estate Investment Trust |
Assets | |
Long-term investments, at value (cost $43,774,511) | $49,091,551 |
Cash | 45,124 |
Receivable for dividends | 114,286 |
Total assets | 49,250,961 |
Liabilities | |
Accrued expenses: | |
Management fees | 13,044 |
Trustees fees | 333 |
Other | 391 |
Total liabilities | 13,768 |
Net assets | $49,237,193 |
Shares outstanding | 1,450,000 |
Net asset value ("NAV") per share | $ 33.96 |
Net assets consist of: | |
Capital paid-in | $48,647,160 |
Total distributable earnings | 590,033 |
Net assets | $49,237,193 |
Authorized shares | Unlimited |
Par value per share | $ 0.01 |
Investment Income | |
Dividends | $ 394,773 |
Securities lending income, net | 6 |
Total investment income | 394,779 |
Expenses | |
Management fees | 55,248 |
Professional fees | 249 |
Trustees fees | 24 |
Total expenses | 55,521 |
Net investment income (loss) | 339,258 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (68,335) |
In-kind redemptions | 208,768 |
Change in net unrealized appreciation (depreciation) of investments | 6,904,144 |
Net realized and unrealized gain (loss) | 7,044,577 |
Net increase (decrease) in net assets from operations | $7,383,835 |
Unaudited Six Months Ended 6/30/21 | Year Ended 12/31/20 | |
Operations | ||
Net investment income (loss) | $ 339,258 | $ 865,222 |
Net realized gain (loss) from: | ||
Investments | (68,335) | (4,656,049) |
In-kind redemptions | 208,768 | 3,361,689 |
Change in net unrealized appreciation (depreciation) of investments | 6,904,144 | (7,053,826) |
Net increase (decrease) in net assets from operations | 7,383,835 | (7,482,964) |
Distributions to Shareholders | ||
Dividends | (319,480) | (945,327) |
Return of capital | — | (517,728) |
Decrease in net assets from distributions to shareholders | (319,480) | (1,463,055) |
Fund Share Transactions | ||
Proceeds from shares sold | 19,350,995 | 12,301,870 |
Cost of shares redeemed | (1,460,930) | (36,523,980) |
Net increase (decrease) in net assets from Fund share transactions | 17,890,065 | (24,222,110) |
Net increase (decrease) in net assets | 24,954,420 | (33,168,129) |
Net assets at the beginning of period | 24,282,773 | 57,450,902 |
Net assets at the end of period | $49,237,193 | $ 24,282,773 |
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 | |
2021(d) | $26.98 | $0.32 | $ 7.47 | $ 7.79 | $(0.81) | $ — | $ — | $(0.81) | $33.96 | $33.96 | |
2020 | 30.24 | 0.48 | (2.82) | (2.34) | (0.59) | (0.04) | (0.29) | (0.92) | 26.98 | 26.98 | |
2019 | 25.05 | 0.75 | 5.50 | 6.25 | (0.73) | (0.33) | — | (1.06) | 30.24 | 30.23 | |
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 |
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) |
26.91% | 26.93% | $49,237 | 0.35%* | 2.12%* | 5% |
(7.29) | (7.27) | 24,283 | 0.35 | 1.95 | 29 |
25.10 | 25.38 | 57,451 | 0.35 | 2.57 | 14 |
(1.05) | 0.01 | 31,316 | 0.35 | 3.05 | 16 |
7.45 | 8.41 | 6,588 | 0.35 | 2.70 | 20 |
(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 4 - Portfolio Securities and Investments in Derivatives) 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 5 - Fund Shares). |
(d) | Unaudited. For the six months ended June 30, 2021. |
* | Annualized. |
Level 1 | Level 2 | Level 3 | Total | |
Long-Term Investments*: | ||||
Real Estate Investment Trust Common Stocks | $49,091,551 | $ — | $ — | $49,091,551 |
* | Refer to the Fund's Portfolio of Investments for industry classifications. |
Purchases | $1,894,669 |
Sales | 1,759,518 |
In-kind purchases | $19,322,135 |
In-kind sales | 1,459,794 |
Six Months Ended 6/30/21 | Year Ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | 600,000 | $19,350,995 | 500,000 | $ 12,301,870 | |
Shares redeemed | (50,000) | (1,460,930) | (1,500,000) | (36,523,980) | |
Net increase (decrease) | 550,000 | $17,890,065 | (1,000,000) | $(24,222,110) |
Tax cost of investments | $43,946,839 |
Gross unrealized: | |
Appreciation | $ 7,226,249 |
Depreciation | (2,081,537) |
Net unrealized appreciation (depreciation) of investments | $ 5,144,712 |
Undistributed net ordinary income | $ — |
Undistributed net long-term capital gains | — |
Distributions from net ordinary income1 | $865,222 |
Distributions from net long-term capital gains | 80,105 |
Return of capital | 517,728 |
1 | Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any. |
Not subject to expiration: | |
Short-term | $1,628,827 |
Long-term | 3,086,063 |
Total | $4,714,890 |
Six Months Ended June 30, 2021 | Number of Days | % of Total Days | |||
Premium/Discount Range: | |||||
0.00% to 0.25% | 66 | 53.2% | |||
(0.01)% to (0.25)% | 58 | 46.8% | |||
124 | 100% |
• | Centralization of Functions – ongoing initiatives to centralize investment leadership, market approach and shared support functions within Nuveen and its affiliates in seeking to operate more effectively the business and enhance the services to the Nuveen funds; |
• | 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 continually improve product platforms and investment strategies to better serve shareholders through, among other things, rationalizing the product line and gaining efficiencies through mergers, repositionings and liquidations; launching new funds; reviewing and updating investment policies and benchmarks; and modifying portfolio management teams for various funds; |
• | Investment Team Integrations – continuing to integrate and adjust the members of certain investment teams, in part, to allow greater access to tools and resources within the Nuveen organization and its affiliates; |
• | Capital Initiatives – continuing to invest capital to support new Nuveen funds with initial capital as well as to support existing funds and facilitate regulatory or logistical changes; |
• | Liquidity Management – continuing to operate the liquidity management program of the applicable Nuveen funds including monitoring daily their liquidity profile and assessing annually the overall liquidity risk of such funds; |
• | Compliance Program Initiatives – continuing efforts to mitigate compliance risk, increase operating efficiencies, implement enhancements to strengthen key compliance program elements and support international business growth and other corporate objectives; |
• | Investment Oversight – preparing reports to the Board addressing, among other things, fund performance; market conditions; investment teams; new products; changes to mandates, policies and benchmarks; and other management proposals; |
• | Risk Management and Valuation Services - continuing to oversee and manage risk including, among other things, conducting daily calculations and monitoring of risk measures across the Nuveen funds, instituting appropriate investment risk controls, providing risk reporting throughout the firm, participating in internal oversight committees, and continuing to implement an operational risk framework that seeks to provide greater transparency of operational risk matters across the complex as well as provide multiple other risk programs that seek to provide a more disciplined and consistent approach to identifying and mitigating Nuveen’s operational risks. Further, the securities valuation team continues, among other things, to oversee the daily valuation process of the portfolio securities of the funds, maintains the valuation policies and procedures, facilitates valuation committee meetings, manages relationships with pricing vendors, and prepares relevant valuation reports and designs methods to simplify and enhance valuation workflow within the organization; |
• | Regulatory Matters – continuing efforts to monitor regulatory trends and advocate on behalf of Nuveen and/or the Nuveen funds, to implement and comply with new or revised rules and mandates and to respond to regulatory inquiries and exams; |
• | Government Relations – continuing efforts of various Nuveen teams and Nuveen’s affiliates to develop policy positions on a broad range of issues that may impact the Nuveen funds, advocate and communicate these positions to lawmakers and other regulatory authorities and work with trade associations to ensure these positions are represented; |
• | Business Continuity, Disaster Recovery and Information Security – continuing efforts of Nuveen to periodically test and update business continuity and disaster recovery plans and, together with its affiliates, to maintain an information security program designed to identify and manage information security risks, and provide reports to the Board, at least annually, addressing, among other things, management’s security risk assessment, cyber risk profile, potential impact of new or revised laws and regulations, incident tracking and other relevant information technology risk-related reports; and |
• | Dividend Management Services – continuing to manage the dividends among the varying types of Nuveen funds within the Nuveen complex to be consistent with the respective fund’s product design and positioning in striving to deliver those earnings to shareholders in a relatively consistent manner over time as well as assisting in the development of new products or the restructuring of existing funds. |
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 Rule 30a-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 Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-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 Rule 30a-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)(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.
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/ Diana R. Gonzalez | ||||
Diana R. Gonzalez Vice President and Secretary |
Date: September 2, 2021
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 M. Farris | ||||
Jordan M. Farris Chief Administrative Officer (principal executive officer) |
Date: September 2, 2021
By | (Signature and Title) | /s/ E. Scott Wickerham | ||||
E. Scott Wickerham Vice President and Controller (principal financial officer) |
Date: September 2, 2021