ETF Trends CEO Tom Lydon discussed the Nationwide Risk-Managed Income ETF (NUSI) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

NUSI is an actively managed portfolio of stocks included in the Nasdaq-100 Index and an options collar. Per index rules, the fund only invests in the top 100 largest by market cap, nonfinancial stocks listed on NASDAQ. A collar strategy involves selling or writing call options and buying put options, thus generating income to hedge some downside risk. The strategy seeks to generate high current income monthly from any dividends received from the underlying stock and the option premiums retained.

When looking at why NUSI is being considered, Lydon explains how investors may consider a new risk-managed income ETF strategy that could generate higher income relative to traditional income-focused investments. Getting a lay of the land, the government has stepped in to try and catch the economy’s fall with a fiscal $2 trillion stimulus package on deck, which should help support small businesses, corporations, households, states, and local governments, among others.

The Federal Reserve has also stepped up with several loose monetary policies, including unlimited Treasury and MBS purchases, money market mutual fund liquidity facility, commercial paper funding facility and primary dealer credit facility, among others. The equity markets, though, remain depressed, and many expect a severe hit to the upcoming earnings season ahead.

The economy is also at the edge of a recession after the government’s push toward self-isolation halted the economy. Many anticipate a sharp contraction in the second quarter before turning back to positive growth in the fourth quarter.