Nuveen Investments Inc., a Chicago money manager, announced Thursday that it had raised $1.3 billion in an initial public offering of a new exchange-traded stock fund.
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The Nuveen Equity Premium Opportunity Fund will invest in diversified common stock and replicate average price movements of a blended index of the Standard & Poor's 500 and the Nasdaq 100.
Nuveen, which built its reputation as a municipal bond manager, said the fund should appeal to fixed-income investors worried about rising interest rates, as well as to stock buyers.
Exchange-traded funds are listed and traded like stocks and track indexes of equities, bonds, and other assets. They are expected to be one of this year's hot investment categories.
