Nuveen ESG International Developed Markets Equity ETF(CBOE:NUDM)

NUDM screens for firms with positive ESG aspects in the developed markets ex-NA space. Index construction starts with a selection universe from its base index MSCI EAFE Index, which it trims down by applying a series of ESG screens. The screens attempt to capture different facets of ESG, such as compliance with international laws, relations with employees, and carbon emissions. The screens also exclude certain controversial businesses such as alcohol, tobacco, gambling, and weapons. The remaining firms are scored on ESG factors, and the top scoring firms within each sector (the top 50% by market cap) are selected for inclusion in the fund. NUDMs portfolio is weighted by a multifactor optimizer that tries to minimize any risk and return distortions created by the funds ESG screen. The portfolio is rebalanced and reconstituted quarterly. NUEM is a sibling fund with an emerging markets exposure.