| Nuveen
to Launch 5 Treasury Index ETFs, Announces Monthly Tax-Free
Dividends for Closed-End ETFs
By John Spence
January 3, 2001 |
|
Chicago-based Nuveen Investments announced that it plans to launch
the first exchange-traded funds (ETFs) that track U.S. Treasury
Indexes. The new ETFs will be called Fixed Income Trust Receipts
(FITRs) and will be based on Ryan Treasury Indexes of 1-year,
2-year, 5-year, and 10-year Treasury issues and 20-year Treasury
STRIPs.
STRIPs, which stands for Separate Trading of Registered Interest
and Principal Securities, are created by bond dealers by dividing
individual interest-paying securities into component cash flows
and selling each one separately. When a bond gets "stripped"
of its interest payments, it becomes a zero-coupon bond. The owner
is not paid any interest, but buys the right to repayment of principal
at a discount to the face value.
The new ETFs will be traded on the American Stock Exchange (AMEX),
pending final regulatory approval.
The Nuveen funds will track Ryan Treasury Indexes, the first
set of bond indexes developed by Ronald J. Ryan in 1983. Ryan
previously served as Director of Fixed Income Research at Lehman
Brothers before he left in 1982 to found a fixed-income quantitative
research firm that would later become Ryan
Labs, Inc.
Below is a table that lists historical performance of Ryan Treasury
Indexes that the Nuveen ETFs will be based upon, as of 11/30/2000.
| Index name |
10 yr.* |
5 yr.* |
3 yr.* |
1 yr. |
1 mo. |
| Ryan 12 mo. Bill |
5.71% |
5.60% |
5.29% |
5.99% |
0.71% |
| Ryan 2 year TSY |
6.22% |
5.28% |
4.98% |
6.26% |
1.01% |
| Ryan 5 year TSY |
7.11% |
5.46% |
5.54% |
9.00% |
1.98% |
| Ryan 10 year TSY |
7.71% |
5.44% |
5.20% |
9.76% |
2.82% |
| Ryan 20-year Strips |
12.80% |
8.86% |
8.57% |
32.31% |
n/a |
* annualized returns Source:
Ryan Labs, Inc.
The new Treasury Index ETFs may be attractive to many investors
in 2001 should stock prices continue to sag. "These new ETFs
will make buying and selling Treasury securities as convenient
as buying and selling stocks," said Gary Gastineau, Managing
Director of ETF Product Development at Nuveen. "They will
benefit both retail and institutional investors."
Nuveen Closed-End Exchange-Traded Funds and Portfolios Declare
Monthly Tax-free Dividends
Sixty closed-end Nuveen exchange-traded funds and portfolios declared
their monthly dividends today. In October, Nuveen announced its
plans to launch its first open-ended ETF based on the America's
Fastest Growing Companies Index, an index comprised of 500 small
cap companies that meet specific earnings growth criteria.
All of the listed dividends, excepting the Nuveen Senior Loan
Fund, are tax-free.
Record Date: 1/15/2001
Ex-Dividend Date: 1/10/2001
Payable Date: 2/1/2001
Exchange-Traded Portfolios
| Ticker |
Portfolio
name |
Dividend
per share ($) |
| NXP |
Select Portfolio |
.0750 |
| NXQ |
Select Portfolio 2 |
.0725 |
| NXR |
Select Portfolio 3 |
.0680 |
| NXC |
Insured CA Select Portfolio |
.0660 |
| NXN |
Insured NY Select Portfolio |
.0650 |
Source: Nuveen Investments
Non-Leveraged ETFs
| Ticker |
Fund name |
Dividend per share ($) |
| NUV |
Municipal Value |
.0425 |
| NCA |
CA Municipal Value |
.0430 |
| NNY |
NY Municipal
Value |
.0425 |
| NMI |
Municipal Income |
.0585 |
| NIM |
Select Maturities |
.0525 |
Source: Nuveen Investments
National Leveraged ETFs
| Ticker |
Fund name |
Dividend per share ($) |
| NPI |
Premium Income |
.0645 |
| NPP |
Performance Plus |
.0670 |
| NMA |
Advantage |
.0700 |
| NMO |
Market Opportunity |
.0720 |
| NQM |
Investment Quality |
.0695 |
| NQI |
Insured Quality |
.0700 |
| NQS |
Select Quality |
.0720 |
| NQU |
Quality Income |
.0760 |
| NIO |
Insured Opportunity |
.0715 |
| NPF |
Premier |
.0765 |
| NIF |
Premier Insured |
.0720 |
| NPM |
Premium Income 2 |
.0730 |
| NPT |
Premium Income 4 |
.0665 |
| NPX |
Insured Premium 2 |
.0600 |
| NAD |
Dividend Advantage |
.0705 |
Source: Nuveen Investments
California Leveraged ETFs
| Ticker |
Fund name |
Dividend per share ($) |
| NCP |
Performance Plus |
.0745 |
| NCO |
Market Opportunity |
.0755 |
| NQC |
Investment Quality |
.0765 |
| NVC |
Select Quality |
.0760 |
| NUC |
Quality Income |
.0785 |
| NPC |
Insured Premium Income |
.0695 |
| NCL |
Insured Premium Income
2 |
.0645 |
| NCU |
Premium Income |
.0640 |
| NAC |
Dividend Advantage |
.0670 |
Source: Nuveen Investments
Florida Leveraged ETFs
| Ticker |
Fund name |
Dividend per share ($) |
| NQF |
Investment
Quality |
.0740 |
| NUF |
Quality Income |
.0735 |
| NFL |
Insured Premium Income |
.0640 |
Source: Nuveen Investments
New York Leveraged ETFs
| Ticker |
Fund name |
Dividend per share ($) |
| NNP |
Performance Plus |
.0725 |
| NQN |
Investment Quality |
.0690 |
| NVN |
Select Quality |
.0725 |
| NUN |
Quality Income |
.0710 |
| NNF |
Insured Premium Income |
.0665 |
| NAN |
Dividend Advantge |
.0650 |
Source: Nuveen Investments
Other State Leveraged ETFs
| Ticker |
Fund name |
Dividend per share ($) |
| NAZ |
AZ Premium Income |
.0680 |
| NTC |
CT Premium Income |
.0680 |
| NPG |
GA Premium Income |
.0640 |
| NMY |
MD Premium Income |
.0650 |
| NMT |
MA Premium Income |
.0680 |
| NUM |
MI Quality Income |
.0735 |
| NMP |
MI Premium Income |
.0675 |
| NOM |
MO Premium Income |
.0615 |
| NQJ |
NJ Investment
Quality |
.0765 |
| NNJ |
NJ Premium Income |
.0675 |
| NNC |
NC Premium Income |
.0625 |
| NUO |
OH Quality Income |
.0750 |
| NQP |
PA Investment Quality |
.0760 |
| NPY |
PA Premium Income 2 |
.0650 |
| NTX |
TX Quality Income |
.0715 |
| NPV |
VA Premium Income |
.0670 |
Source: Nuveen Investments
Senior Loan ETF
| Ticker |
Fund name |
Dividend per share ($) |
| NSL |
Senior Income
Fund |
.0900 |
Source: Nuveen Investments
