A risk-managed approach that seeks to generate income and provide downside protection

The Nationwide Risk-Managed Income ETF (NUSI) seeks to provide investors:

High monthly income generation

Portfolio volatility reduction

A measure of downside protection

A healthy distribution yield and partial downside protection highlight NUSI’s potential value relative to other income-oriented investments.

Distribution yield* vs
other income-oriented investments
(as of 1/31/21)

investment return
(Since Fund inception 12/19/19 – 1/31/21)

30-day SEC Yield (as of 1/31/21): 0.07%

Click here to learn about the sourcing and treatment of monthly fund distributions

The results shown represent past performance; past performance does not guarantee future results. Current performance may be lower or higher than the past performance shown, which does not guarantee future results. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. To obtain the most recent month-end performance, go to etf.nationwide.com or call 1-877-893-1830.

*Distribution Yield: The annual yield an investor would receive if the most recent fund distribution remained the same going forward. The distribution yield represents a single distribution from the Fund and is not a representation of the Fund's total return. The distribution yield is calculated by multiplying the most recent distribution by 12 in order to annualize it, and then dividing by the Fund's NAV.

Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made solely on returns.

For comparative risk discussion of NUSI vs. each index and the index definitions, please click here.

TThe designated proxies for each asset class include ETFs that seek to provide exposure to or track an index comprised of a comprehensive, diversified basket of securities that can be reasonably deemed as representative of the applicable asset class. The underlying indexes for these proxies include: High Dividend Stocks, FTSE® High Dividend Yield Index; REITs, FTSE® Nareit Equity REITS Index; Emerging Market Debt, J.P. Morgan EMBI Global Core Index; High-Yield Bonds, Markit iBoxx USD Liquid High Yield Index; Preferreds, ICE BofAML Core Plus Fixed Rate Preferred Securities Index; MLPs, Alerian MLP Infrastructure Index. Source: Bloomberg (2020).

Factors like reduced volatility and market correlation also differentiate NUSI from other investments.

30-day volatility as of 1/31/21
NUSI High Yield Bonds Emerging Market Debt Preferreds High Dividend Stocks REITs MLPs
6.62% 3.82% 4.97% 8.63% 15.78% 19.32% 32.03%

30-day volatility (Source: Ycharts): Volatility is used as a measure of a security’s riskiness. Typically investors view a high volatility as high risk. 30-day rolling volatility = standard deviation of the last 30 percentage changes in Total Return Price. Standard deviation is a measure of price variability (risk).

Beta as of 1/31/21
NUSI Emerging Market Debt High Yield Bonds Preferreds High Dividend Stocks REITs MLPs
0.23 0.35 0.40 0.49 0.94 1.04 1.06

Beta (Source: Investopedia): Beta, used in capital asset pricing model (CAPM), is a measure of the volatility, or systematic risk, of a security or portfolio, in comparison to the market as a whole.

Investment Strategy Overview

Managed by Harvest Volatility Management, an experienced derivative asset management firm, the strategy offers an innovative approach to traditional income investing by employing a dynamic, risk-managed, net credit collar.

Purchase all underlying stocks in the Nasdaq-100 Index.

Deploys a rules-based options collar strategy.

Monthly distributions are paid to investors using a portion of the premium generated by the call option.

Additional premium may be used to reinvest in the underlying portfolio of Nasdaq-100 stocks.

Income from net realized capital gains, if any, are distributed annually.

Where NUSI potentially fits in a portfolio

The Nationwide Risk Managed Income ETF is designed for income-focused investors seeking to lower their exposure to market volatility and minimize the potential for losses during down markets. NUSI can be used to enhance and diversify core income-oriented portfolio allocations in the following ways:

  • As a supplement to current income strategies during cycles of low or falling yields.
  • As a less volatile strategy for maintaining equity exposure during volatile market periods, where the protective put options offer a degree of downside protection.
  • As a strategy for managing the risk of rising interest rates and the possibility of economic recession as an alternative to a traditional bond investment.
  • As a complement to a traditional 60% equity/40% bond portfolio, potentially enhancing the yield generated by the bond allocation while reducing potential volatility of the equity allocation.

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