Nationwide Adds to its Strategic Beta ETF Offerings
Columbus, OH - Nationwide has added another Strategic Beta ETF option that seeks to provide investors with improved risk-adjusted returns by enhancing diversification. The new Nationwide Maximum Diversification Emerging Markets Core Equity ETF (MXDE) is the latest Strategic Beta ETF since Nationwide launched three others in 2017.
“The Nationwide Maximum Diversification Emerging Markets Core Equity ETF seeks to identify the exact combination of stocks within the emerging markets universe that will maximize the diversification benefits of a portfolio while retaining the full equity risk premium,” Chris Graham, chief investment officer for Nationwide Funds, said. “In other words, by building portfolios which seek to minimize idiosyncratic risk exposure from specific stock, sector, factor or country bets, this fund seeks to deliver higher risk-adjusted returns.”
Financial professionals interested in learning more should call the Nationwide ETF sales desk at 1-877-893-1830 or visit http://etf.nationwide.com.
Like the Nationwide Maximum Diversification U.S. Core Equity ETF (MXDU) launched last year, the Nationwide Maximum Diversification Emerging Markets Core Equity ETF (MXDE) seeks to deliver higher risk-adjusted returns relative to market cap-weighted strategies by creating a more diversified risk allocation aimed at capturing the full equity risk premium. Both funds track an index developed by TOBAM that applies liquidity and socially responsible investment (SRI) screens in determining the investable universe. Based on a patented, proprietary mathematical formula, the TOBAM Diversification Ratio®, TOBAM weights individual stocks to minimize the correlations among holdings, resulting in the creation of the “most diversified portfolio,” given a 50% active share constraint.
The benchmark for the new fund is the MSCI Emerging Market Index and the listing exchange is NYSE Arca.
“Since the end of 2015 the MSCI Emerging Market index has outperformed the S&P 500 Index by nineteen percent on a total return basis1,” Graham said. “We think emerging markets are a great option to help advisors combat their clients’ home bias investing and further diversify their portfolio.”
In addition to the new strategic beta ETFs, Nationwide is a strategic partner to advisors, providing a comprehensive suite of subadvised mutual funds designed to help meet the unique investment goals and risk tolerances of investors. Nationwide currently manages 115 funds with approximately $65 billion in assets, excluding fund of funds.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.