Nationwide Receives Another ETF Award
Nationwide’s Investment Management Group was honored recently with the Active ETF of the Year award at Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards for the Nationwide Risk-Managed Income ETF (TRADING SYMBOL: NUSI). The Awards recognize “outstanding business leaders, the best creative minds and the top performers across U.S. asset management.” NUSI also recently surpassed the $500 million mark for assets under management.
“We are proud to be recipients of the Active ETF of the Year Award,” said Mike Spangler, leader of Nationwide Financial’s Investment Management Group. “The award reflects our dedication to NUSI and providing investors with a financial solution to help generate high current income in today’s market.”
NUSI seeks to generate investment income and provide a measure of downside protection through an innovative approach to traditional income investing by deploying an options strategy called a protective net-credit collar. This strategy is established by combining a covered call, where it sells an upside call option, and a protective put, where it uses a portion of the proceeds received to fully finance the purchase of a downside put option.
Fundamentally designed with income-generation in mind, the Nationwide Risk-Managed Income ETF potentially offers several benefits that may address the yield enhancement and volatility management needs of investors, including seeking:
- High monthly income generation
- Portfolio volatility reduction
- Reduced duration risk and interest rate sensitivity
- Capital appreciation from equity participation
- Downside risk mitigation
This isn’t the first award that Nationwide has won related to NUSI. Last month Nationwide won the Digital Marketing Campaign of the Year at the Wealthmanagement.com Industry Awards.
The winning campaign involved the delivery of an innovative, digital marketing approach fundamentally designed to address the evolving investment education needs and thought leadership consumption habits of advisors and their clients in the wake of the COVID-19 pandemic. The campaign drove awareness of NUSI, serving as a catalyst for both early stage and long-term market adoption.
To see a list of all the Fund Intelligence Mutual Fund Industry and ETF Virtual Awards visit here.
This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. Investors should work with their financial professional to discuss their specific situation.
Call 800-617-0004 to request a summary prospectus and/or a prospectus, or download prospectuses at etf.nationwide.com. These prospectuses outline investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund’s return may not match or achieve a high degree of correlation with the return of the underlying index.
KEY RISKS: The Fund is subject to the risks of investing in equity securities, including tracking stock (a class of common stock that “tracks” the performance of a unit or division within a larger company). A tracking stock’s value may decline even if the larger company’s stock increases in value. The Fund is subject to the risks of investing in foreign securities (currency fluctuations, political risks, differences in accounting and limited availability of information, all of which are magnified in emerging markets). The Fund may invest in more-aggressive investments such as derivatives (which create investment leverage and illiquidity and are highly volatile). The Fund employs a collared options strategy (using call and put options is speculative and can lead to losses because of adverse movements in the price or value of the reference asset). The success of the Fund’s investment strategy may depend on the effectiveness of the subadviser’s quantitative tools for screening securities and on data provided by third parties.
The Fund expects to invest a portion of its assets to replicate the holdings of an index. Correlation between Fund performance and index performance may be affected by Fund expenses and because the Fund may not be invested fully in the securities of the index or may hold securities not included in the index.
The Fund frequently may buy and sell portfolio securities and other assets to rebalance its exposure to various market sectors. Higher portfolio turnover may result in higher levels of transaction costs paid by the Fund and greater tax liabilities for shareholders. The Fund may concentrate on specific sectors or industries, subjecting it to greater volatility than that of other ETFs. The Fund may hold large positions in a small number of securities, and an increase or decrease in the value of such securities may have a disproportionate impact on the Fund’s value and total return. Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered nondiversified. Additional Fund risk includes: Collared options strategy risk, correlation risk, derivatives risk, foreign investment risk, and industry concentration risk.
Nasdaq-100 Index: An unmanaged, market capitalization-weighted index of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. The Index includes companies from various industries except for the financial industry, like commercial and investment banks. These non-financial sectors include retail, biotechnology, industrial, technology, health care, and others.
A call option is a financial contract that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity other asset or instrument at a specified price within a specific time period.
A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities.
A put option is a contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a pre-determined price within a specified time frame.
Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates.
Nationwide Fund Advisors (NFA) is the registered investment advisor to Nationwide ETFs, which are distributed by Quasar Distributors LLC.Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, Columbus, OH. NFD is not affiliated with any subadviser contracted by Nationwide Fund Advisors (NFA), with the exception of Nationwide Asset Management, LLC (NWAM). Nationwide Investment Services Corporation (NISC), member FINRA.
The Fund Intelligence’s Mutual Fund Industry and ETF Active ETF of the Year award is given to the most successful active ETF as determined by a combination of several factors, including flows, performance, and innovation. The ETF must be considered active by the Securities and Exchange Commission to qualify.
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