NPFI Profile
The Nuveen Preferred and Income ETF is an actively managed exchange-traded fund (ETF) that focuses on delivering income through investments in preferred securities and other income-generating assets. Under normal market conditions, the fund targets allocating at least 80% of its total assets—comprising net assets and any borrowings used for investment purposes—toward preferred securities and various income-producing securities. This strategic allocation is designed to achieve its primary investment objective of providing investors with a steady income stream.
The fund primarily invests in preferred securities, which are hybrid instruments combining characteristics of both equities and fixed income. Preferred securities generally offer higher yields than common stocks and fixed-rate bonds, making them an attractive option for income-focused investors. Additionally, the ETF may invest in other types of income-producing assets, including convertible securities, debt securities, and hybrid instruments. This diverse approach allows the fund to tap into various sources of income while managing risk through broad exposure.
As an actively managed ETF, the Nuveen Preferred and Income ETF benefits from the expertise of its portfolio managers, who actively select securities based on market conditions and investment opportunities. The fund's management team employs a disciplined investment process to identify high-quality preferred and income-producing securities, aiming to enhance returns and manage risk. The fund's active management approach allows for flexibility in responding to changing market dynamics and interest rate environments.
Overall, the Nuveen Preferred and Income ETF offers investors a focused investment in income-generating assets with the potential for attractive yields. Its commitment to investing a significant portion of its assets in preferred securities and other income-producing investments reflects a strategy designed to deliver reliable income while navigating market fluctuations. This makes the ETF a suitable option for income-seeking investors looking for diversification and professional management in their investment portfolios.
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