Funds
Exchange-Traded
Funds
Nuveen
Exchange-Traded
July
31,
2023
Annual
Report
Fund
Name
Listing
Exchange
Ticker
Symbol
Nuveen
Enhanced
Yield
U.S.
Aggregate
Bond
ETF
NYSE
Arca
NUAG
Nuveen
ESG
1-5
Year
U.S.
Aggregate
Bond
ETF
(formerly
Nuveen
Enhanced
Yield
1-5
Year
U.S.
Aggregate
Bond
ETF)
NYSE
Arca
NUSA
Nuveen
ESG
High
Yield
Corporate
Bond
ETF
NYSE
Arca
NUHY
Nuveen
ESG
U.S.
Aggregate
Bond
ETF
NYSE
Arca
NUBD
2
Table
of
Contents
Chair’s
Letter
to
Shareholders
3
Important
Notices
4
Portfolio
Managers’
Comments
5
Risk
Considerations
and
Dividend
Information
9
About
the
Funds’
Benchmarks
10
Fund
Performance,
Expense
Ratios
and
Holdings
Summaries
12
Yields
21
Expense
Examples
22
Report
of
Independent
Registered
Public
Accounting
Firm
24
Portfolio
of
Investments
26
Statement
of
Assets
and
Liabilities
83
Statement
of
Operations
84
Statement
of
Changes
in
Net
Assets
85
Financial
Highlights
87
Notes
to
Financial
Statements
89
Important
Tax
Information
96
Additional
Fund
Information
97
Glossary
of
Terms
Used
in
this
Report
99
Liquidity
Risk
Management
Program
100
Annual
Investment
Management
Agreement
Approval
Process
101
Trustees
and
Officers
108
Chair’s
Letter
to
Shareholders
3
Dear
Shareholders,
Inflation
concerns
have
continued
to
dominate
the
investment
landscape
in
2023.
While
inflation
rates
have
fallen
meaningfully
from
post-pandemic
highs,
helped
by
the
significant
policy
interest
rate
increases
from
the
U.S.
Federal
Reserve
(Fed)
and
other
global
central
banks
since
2022
and
the
normalization
of
supply
chains,
they
currently
remain
above
the
levels
that
central
banks
consider
supportive
of
their
economies’
long-term
growth.
Core
inflation
measures,
which
exclude
volatile
food
and
energy
prices,
in
particular
remain
above
central
banks’
targeted
levels.
At
the
same
time,
the
U.S.
and
other
large
economies
have
remained
relatively
resilient,
even
as
financial
conditions
have
tightened.
U.S.
gross
domestic
product
increased
to
2.1%
in
the
second
quarter
of
2023
from
2.0%
in
the
first
quarter
of
2023,
after
growing
2.1%
in
2022
overall
compared
to
2021.
Consider
that
much
of
this
growth
occurred
while
the
Fed
was
raising
interest
rates
in
one
of
the
fastest
hiking
cycles
in
its
history.
From
March
2022
to
July
2023
(with
only
a
brief
pause
in
June
2023),
the
Fed
increased
the
target
fed
funds
rate
from
near
zero
to
a
range
of
5.25%
to
5.50%
as
of
July
2023.
Despite
historically
high
inflation
and
rapidly
rising
interest
rates,
the
jobs
market
has
remained
relatively
strong,
helping
to
support
consumer
sentiment
and
spending.
However,
markets
are
concerned
that
these
conditions
could
keep
upward
pressure
on
prices
and
wages
while
the
impact
of
the
collapse
of
three
regional
U.S.
banks
(Silicon
Valley
Bank,
Signature
Bank
and
First
Republic
Bank)
and
major
European
bank
Credit
Suisse
in
March
2023
adds
to
uncertainty.
Given
the
lingering
upside
risks
to
inflation
and
the
lagging
impact
of
tighter
credit
conditions
on
the
economy,
Fed
officials
are
closely
monitoring
incoming
inflation
data
and
other
economic
measures
to
modify
their
rate
setting
activity
based
upon
these
factors
on
a
meeting-by-meeting
basis.
The
Fed
remains
committed
to
acting
until
it
sees
sustainable
progress
toward
its
inflation
goals.
Additionally,
market
concerns
surrounding
the
U.S.
debt
ceiling
faded
after
the
government
agreed
in
June
2023
to
suspend
the
nation’s
borrowing
limit
until
January
2025,
averting
a
near-term
default
scenario.
In
the
meantime,
markets
are
likely
to
continue
reacting
in
the
short
term
to
news
about
inflation
data,
economic
indicators
and
central
bank
policy.
We
encourage
investors
to
keep
a
long-term
perspective
amid
the
short-term
turbulence.
Your
financial
professional
can
help
you
review
how
well
your
portfolio
is
aligned
with
your
time
horizon,
risk
tolerance
and
investment
goals.
On
behalf
of
the
other
members
of
the
Nuveen
Fund
Board,
we
look
forward
to
continuing
to
earn
your
trust
in
the
months
and
years
ahead.
Terence
J.
Toth
Chair
of
the
Board
September 22,
2023
4
Important
Notices
Securities
and
Exchange
Commission
(the
“SEC”)
Adopts
Amendments
for
Tailored
Shareholder
Reports
On
October
26,
2022,
the
SEC
adopted
rule
and
form
amendments
(the
“Amendments”)
that
require
mutual
funds
and
exchange-traded
funds
registered
on
Form
N-1A
to
provide
shareholders
with
streamlined
annual
and
semi-annual
shareholder
reports
(“Tailored
Shareholder
Reports”).
Tailored
Shareholder
Reports
are
meant
to
be
three
to
four
pages
in
length
and
will
highlight
key
information
such
as
a
fund’s
expenses,
performance
and
portfolio
holdings.
Other,
more
detailed
information
that
currently
appears
in
fund
shareholder
reports
will
be
made
available
online,
filed
with
the
SEC,
and
delivered
to
investors
free
of
charge
in
paper
or
electronically
upon
request.
The
first
Tailored
Shareholder
Reports
prepared
for
the
Funds
included
within
this
shareholder
report
will
be
for
the
reporting
period
ended
July
31,
2024.
Portfolio
Manager
Update
for
the
Funds
Effective March
21,
2023,
Kevin
Chen
is
no
longer
a
portfolio
manager
of
the
Funds. 
Vivian
Liu
and
James
Tsang
will
continue
to
serve
as
portfolio
managers
for
the
Funds.
Nuveen
Enhanced
Yield
1-5
Year
U.S.
Aggregate
Bond
ETF
(NUSA)
Product
Actions
Effective
after
the
close
of
business
on
June
30,
2023,
NUSA
made
the
following
changes
to
its
name,
investment
objective,
management
fee,
indices
and
principal
investment
strategies:
Name
was
changed
to
“Nuveen
ESG
1-5
Year
U.S.
Aggregate
Bond
ETF.”
Management
fee
was
reduced
from
0.20%
to
0.15%.
Investment
objective
was
changed
to
reflect
that
the
Fund’s
custom
index
changed
to
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index.
Base
Index
was
changed
to
the
Bloomberg
1-5
Year
U.S.
Aggregate
Bond
Index.
Current
principal
investment
strategies
designed
to
enhance
yield
were
changed,
as
described
in
the
Fund’s
most
recent
prospectus
supplement.
Portfolio
Managers’
Comments
5
Nuveen
Enhanced
Yield
U.S.
Aggregate
Bond
ETF
(NUAG)
Nuveen
ESG
1-5
Year
U.S.
Aggregate
Bond
ETF
(NUSA)
(Formerly
Nuveen
Enhanced
Yield
1-5
Year
U.S.
Aggregate
Bond
ETF)
Nuveen
ESG
High
Yield
Corporate
Bond
ETF
(NUHY)
Nuveen
ESG
U.S.
Aggregate
Bond
ETF
(NUBD)
These
Funds
feature
portfolio
management
by
Teachers
Advisors,
LLC,
an
affiliate
of
Nuveen
Fund
Advisors,
LLC.
The
portfolio
managers
are
James
Tsang,
CFA,
and
Vivian
Liu,
CFA.
Effective
following
market
close
on
June
30,
2023,
the
name
of
the
Nuveen
Enhanced
Yield
1-5
Year
U.S.
Aggregate
Bond
ETF
was
changed
to
the
Nuveen
ESG
1-5
Year
U.S.
Aggregate
Bond
ETF,
the
custom
index
changed
from
the
ICE
BofA
Enhanced
Yield
1-5
Year
U.S.
Broad
Bond
Index
to
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index,
the
base
index
changed
from
the
ICE
BofA
1-5
Year
U.S.
Broad
Market
Index
to
the
Bloomberg
1-5
Year
U.S.
Aggregate
Bond
Index,
and
the
expense
ratio
was
reduced
from
0.20%
to
0.15%.
Effective
March
21,
2023,
Lijun
(Kevin)
Chen
retired
and
no
longer
serves
as
a
portfolio
manager
of
the
Funds.
James
Tsang,
PhD,
CFA,
and
Vivian
Liu,
PhD.,
CFA,
continue
to
serve
as
portfolio
managers
of
the
Funds.
Here
the
portfolio
management
team
discusses
U.S.
economic
and
market
conditions,
key
investment
strategies
and
the
performance
of
the
Funds
for
the
twelve-month
reporting
period
ended
July
31,
2023.
For
more
information
on
each
Fund’s
investment
objectives
and
policies,
please
refer
to
each
Fund’s
prospectus.
What
factors
affected
the
U.S.
economy
and
the
bond
market
during
the
twelve-month
annual
reporting
period
ended
July
31,
2023?
The
U.S.
economy
performed
better
than
expected
despite
persistent
inflationary
pressure
and
rising
interest
rates
during
the
twelve-month
period
ended
July
31,
2023.
In
the
second
quarter
of
2023,
the
economy
grew
at
an
annualized
rate
of
2.1%,
according
to
the
second
estimate
from
the
U.S.
Bureau
of
Economic
Analysis,
compared
to
2.0%
in
the
first
quarter
and
in
line
with
2.1%
in
2022
overall.
Early
in
the
reporting
period,
inflation
rose
sharply
because
of
supply
chain
disruptions
and
high
food
and
energy
prices,
the
Russia-Ukraine
war
and
China’s
zero-COVID
restrictions
(eventually
lifted
in
December
2022).
During
the
reporting
period,
U.S.
inflation
reached
its
peak
level
in
August
2022.
Since
then,
price
pressures
have
eased
given
normalization
in
supply
chains,
falling
energy
prices
and
aggressive
measures
by
the
U.S.
Federal
Reserve
(Fed)
and
other
global
central
banks
to
tighten
financial
conditions
and
slow
demand
in
their
economies.
Nevertheless,
during
the
reporting
period
inflation
levels
remained
much
higher
than
central
banks’
target
levels.
The
Fed
raised
its
target
fed
funds
rate
seven
times
during
the
reporting
period,
bringing
it
to
a
range
of
5.25%
to
5.50%
as
of
July
2023.
One
of
the
Fed’s
rate
increases
occurred
in
March
2023,
a
decision
that
was
closely
watched
because
of
the
failure
of
Silicon
Valley
Bank
and
Signature
Bank
during
the
same
month
and
uncertainty
around
the
economic
impact
of
these
failures.
Additionally,
in
March
2023,
Swiss
bank
UBS
agreed
to
buy
Credit
Suisse,
which
was
considered
to
be
vulnerable
in
the
current
environment.
For
much
of
the
reporting
period,
the
Fed’s
activity
led
to
significant
volatility
in
bond
and
stock
markets.
In
addition,
it
contributed
to
an
increase
in
the
U.S.
dollar’s
value
relative
to
major
world
currencies,
which
acts
as
a
headwind
to
the
profits
of
international
companies
and
U.S.
domestic
companies
with
overseas
earnings.
Global
currency
and
bond
markets
were
further
roiled
in
September
2022
by
an
unpopular
fiscal
spending
proposal
in
the
U.K.
but
recovered
after
the
plans
were
abandoned.
During
the
reporting
period,
elevated
inflation
and
higher
borrowing
costs
weighed
on
some
segments
of
the
economy,
including
the
real
estate
market.
Consumer
spending,
however,
has
remained
more
resilient
than
expected,
in
part
because
of
a
still-strong
labor
market,
another
key
gauge
of
the
economy’s
health.
As
of
July
2023,
the
unemployment
rate
remained
near
its
pre-pandemic
low
of
3.5%,
although
monthly
job
growth
appeared
to
be
slowing.
The
strong
labor
market
and
wage
gains
helped
provide
a
measure
of
resilience
to
the
U.S.
economy
during
the
reporting
period,
even
as
the
Fed
sought
to
soften
job
growth
to
help
curb
inflation
pressures.
Portfolio
Managers’
Comments
(continued)
6
Nuveen
Enhanced
Yield
U.S.
Aggregate
Bond
ETF
(NUAG)
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund
employs
a
passive
management
(or
“indexing”)
approach,
seeking
to
track
the
investment
results,
before
fees
and
expenses,
of
the
ICE
BofA
Enhanced
Yield
U.S.
Broad
Bond
Index
(the
custom
index).
The
custom
index
is
designed
to
broadly
capture
the
U.S.
investment
grade
taxable
fixed
income
market
and
uses
a
rules-based
weighting
methodology
that
seeks
to
enhance
yield
while
maintaining
risk
at
a
level
comparable
to
that
of
the
ICE
BofA
U.S.
Broad
Market
Index
(the
base
index).
The
custom
index
selects
from
the
securities
included
in
the
base
index,
which
consists
of
U.S.
dollar
denominated,
investment
grade
taxable
debt
securities,
including
U.S.
Treasury
notes
and
bonds,
government
securities,
corporate
securities,
residential
and
commercial
mortgage-backed
securities
and
asset-backed
securities.
The
Fund
generally
invests
in
a
sample
of
the
securities
in
the
custom
index
whose
risk,
return
and
other
characteristics
resemble
the
risk,
return
and
other
characteristics
of
the
custom
index.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
assets
in
component
securities
of
the
custom
index.
To
the
extent
the
custom
index
concentrates
(i.e.,
holds
25%
or
more
of
its
total
assets)
in
the
securities
of
companies
in
a
particular
industry
or
group
of
industries,
the
Fund
will
concentrate
its
investments
to
approximately
the
same
extent
as
the
custom
index.
The
Fund
rebalances
its
holdings
monthly
in
response
to
the
monthly
custom
index
rebalances.
During
the
reporting
period,
the
Fund
remained
fully
invested
within
its
allocation
targets
to
track
the
custom
index.
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund’s
total
returns
at
NAV
are
compared
with
the
performance
of
the
Fund’s
custom
index,
which
the
Fund
is
designed
to
track.
The
Fund’s
total
return
at
NAV
was
-2.51%
for
the
reporting
period
while
the
custom
index
returned
-2.27%.
The
difference
between
the
Fund’s
total
return
at
NAV
and
that
of
the
custom
index
is
attributable
to
management
fees
and
other
expenses
incurred
by
the
Fund
that
are
not
incurred
by
the
custom
index.
During
the
reporting
period,
the
custom
index
outperformed
the
base
index,
led
primarily
by
the
custom
index’s
relative
underweight
to
longer-duration
Treasuries,
which
generally
underperformed.
The
custom
index’s
relative
underweight
is
consistent
with
its
rules-based
weighting
methodology.
Nuveen
ESG
1-5
Year
U.S.
Aggregate
Bond
ETF
(NUSA)
(formerly
Nuveen
Enhanced
Yield
1-5
Year
U.S.
Aggregate
Bond
ETF
(NUSA))
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund
employs
a
passive
management
(or
“indexing”)
approach.
The
Fund
seeks
to
track
the
investment
results,
before
fees
and
expenses,
of
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index.
Through
market
close
on
June
30,
2023,
the
Fund
sought
to
track
the
investment
returns,
before
fees
and
expenses,
of
the
ICE
BofA
Enhanced
Yield
1-5
Year
U.S.
Broad
Bond
Index.
The
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index
is
designed
to
increase
the
Fund’s
ESG
score
and
achieve
a
lower
carbon
profile
relative
to
the
Bloomberg
1-5
Year
US
Aggregate
Bond
Index.
The
index
selects
from
the
securities
of
the
Bloomberg
1-5
Year
U.S.
Aggregate
Bond
Index,
which
consists
of
fixed-rate
U.S.
investment
grade
taxable
bonds
that
have
a
remaining
term
to
final
maturity
of
between
one
and
five
years.
The
Bloomberg
1-5
Year
U.S.
Aggregate
Bond
Index
includes
Treasuries,
government-
related
and
corporate
securities,
mortgage-backed
securities
(MBS),
asset-backed
securities
(ABS)
and
commercial
mortgage-
backed
securities
(CMBS).
The
Fund
generally
invests
in
a
sample
of
the
securities
in
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index
whose
risk,
return
and
other
characteristics
resemble
the
risk,
return
and
other
characteristics
of
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
assets
in
component
securities
of
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index.
To
the
extent
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index
concentrates
(i.e.,
holds
25%
or
more
of
its
total
assets)
in
the
securities
of
companies
in
a
particular
industry
or
group
of
industries,
the
Fund
will
concentrate
its
investments
to
approximately
the
same
extent
as
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index.
The
Fund
rebalances
its
holdings
monthly
in
response
to
the
monthly
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index
rebalances.
7
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund’s
total
returns
at
NAV
are
compared
with
the
NUSA
Custom
Index,
which
the
Fund
is
designed
to
track.
For
the
purposes
of
this
reporting
period,
the
NUSA
Custom
Index
is
defined
as
the
linked
returns
between
the
ICE
BofA
Enhanced
Yield
1-5
Year
U.S.
Broad
Bond
Index
(through
market
close
on
June
30,
2023)
and
the
Bloomberg
MSCI
1-5
Year
U.S.
Aggregate
ESG
Select
Index
(following
market
close
on
June
30,
2023).
For
the
reporting
period,
the
Fund’s
total
return
at
NAV
was
-0.08%
while
the
NUSA
Custom
Index
returned
-0.01%.
The
difference
between
the
Fund’s
total
return
at
NAV
and
that
of
the
NUSA
Custom
Index
is
attributable
to
management
fees
and
other
expenses
incurred
by
the
Fund
that
are
not
incurred
by
the
NUSA
Custom
Index,
along
with
the
representative
sampling
process,
which
utilizes
a
subset
of
index
securities
in
an
effort
to
provide
exposure
similar
to
that
of
the
NUSA
Custom
Index.
From
the
beginning
of
the
reporting
period
to
June
30,
2023,
the
NUSA
Custom
Index
performed
in
line
with
the
ICE
BofA
1-5
Year
U.S.
Broad
Market
Index.
Through
June
30,
2023,
the
NUSA
Custom
Index’s
overweight
to
corporate
bonds
contributed
positively
to
relative
returns
but
was
partially
offset
by
a
modest
overweight
to
residential
mortgage
backed
securities,
which
underperformed.
Following
the
benchmark
change
after
market
close
on
June
30,
2023,
the
NUSA
Custom
Index
performed
in
line
with
the
Bloomberg
1-5
Year
U.S.
Aggregate
Bond
Index.
There
were
no
material
contributors
or
detractors
that
differentiated
the
NUSA
Custom
Index
from
the
base
index
from
June
30,
2023,
through
the
end
of
the
reporting
period.
Nuveen
ESG
High
Yield
Corporate
Bond
ETF
(NUHY)
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund
employs
a
passive
management
(or
“indexing”)
approach,
seeking
to
track
the
investment
results,
before
fees
and
expenses,
of
the
Bloomberg
MSCI
U.S.
High
Yield
Very
Liquid
ESG
Select
Index
(the
custom
index).
The
custom
index
is
composed
of
U.S.
dollar-denominated
below
investment
grade
corporate
bonds
with
above
average
liquidity
that
satisfy
certain
ESG
and
low-
carbon
criteria.
The
custom
index
selects
from
the
securities
included
in
the
Bloomberg
U.S.
High
Yield
Very
Liquid
Index
(the
base
index),
which
is
designed
to
broadly
capture
the
U.S.
dollar-denominated,
high
yield,
fixed-rate
corporate
bond
market.
The
Fund
generally
invests
in
a
sample
of
the
securities
in
the
custom
index
whose
risk,
return
and
other
characteristics
resemble
the
risk,
return
and
other
characteristics
of
the
custom
index.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
the
sum
of
its
net
assets
and
the
amount
of
any
borrowings
for
investment
purposes
in
component
securities
of
the
custom
index.
To
the
extent
the
custom
index
concentrates
(i.e.,
holds
25%
or
more
of
its
total
assets)
in
the
securities
of
companies
in
a
particular
industry
or
group
of
industries,
the
Fund
will
concentrate
its
investments
to
approximately
the
same
extent
as
the
custom
index.
The
Fund
rebalances
its
holdings
monthly
in
response
to
the
monthly
custom
index
rebalances.
During
the
reporting
period,
the
Fund
remained
fully
invested
within
its
allocation
targets
to
track
the
custom
index.
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund’s
total
returns
at
NAV
are
compared
with
the
performance
of
the
Fund’s
custom
index,
which
the
Fund
is
designed
to
track.
For
the
reporting
period,
the
Fund’s
total
return
at
NAV
was
2.47%
while
the
custom
index
returned
2.86%.
The
difference
between
the
Fund’s
total
return
at
NAV
and
that
of
the
custom
index
is
attributable
to
management
fees
and
other
expenses
incurred
by
the
Fund
that
are
not
incurred
by
the
custom
index,
along
with
the
representative
sampling
process,
which
utilizes
a
subset
of
index
securities
in
an
effort
to
provide
exposure
similar
to
that
of
the
custom
index.
During
the
reporting
period,
the
custom
index
underperformed
the
base
index.
Security
selection
within
consumer
cyclicals
was
a
leading
detractor
over
the
period
driven
by
an
underweight
in
casinos
and
gaming
issuers.
The
custom
index's
underweight
in
this
industry
is
consistent
with
its
ESG
selection
methodology.
Nuveen
ESG
U.S.
Aggregate
Bond
ETF
(NUBD)
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund
employs
a
passive
management
(or
“indexing”)
approach,
seeking
to
track
the
investment
results,
before
fees
and
expenses,
of
the
Bloomberg
MSCI
U.S.
Aggregate
ESG
Select
Index
(the
custom
index).
The
custom
index
is
composed
of
U.S.
investment
grade
fixed
income
securities
that
satisfy
certain
ESG
and
low-carbon
criteria,
including
U.S.
government
securities,
debt
securities
issued
by
U.S.
corporations,
residential
and
commercial
mortgage-backed
securities,
asset-backed
securities
and
U.S.
dollar-denominated
debt
securities
issued
by
non-U.S.
corporations
that
are
publicly
offered
for
sale
in
the
U.S.
The
custom
index
Portfolio
Managers’
Comments
(continued)
8
selects
from
the
securities
included
in
the
Bloomberg
U.S.
Aggregate
Bond
Index
(the
base
index),
which
is
designed
to
broadly
capture
the
U.S.
investment
grade,
taxable
fixed
income
market.
The
Fund
generally
invests
in
a
sample
of
the
securities
in
the
custom
index
whose
risk,
return
and
other
characteristics
resemble
the
risk,
return
and
other
characteristics
of
the
custom
index.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
the
sum
of
its
net
assets
and
the
amount
of
any
borrowings
for
investment
purposes
in
component
securities
of
the
custom
index.
To
the
extent
the
custom
index
concentrates
(i.e.,
holds
25%
or
more
of
its
total
assets)
in
the
securities
of
companies
in
a
particular
industry
or
group
of
industries,
the
Fund
will
concentrate
its
investments
to
approximately
the
same
extent
as
the
custom
index.
The
Fund
rebalances
its
holdings
monthly
in
response
to
the
custom
index
rebalances.
During
the
reporting
period,
the
Fund
remained
fully
invested
within
its
allocation
targets
to
track
the
custom
index.
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
July
31,
2023?
The
Fund’s
total
returns
at
NAV
are
compared
with
the
performance
of
the
Fund’s
custom
index,
which
the
Fund
is
designed
to
track.
For
the
reporting
period,
the
Fund’s
total
return
at
NAV
was
-3.47%
while
the
custom
index
returned
-3.42%.
The
difference
between
the
Fund’s
total
return
at
NAV
and
that
of
the
custom
index
is
attributable
to
the