Nationwide Risk-Managed Income ETFs

A new approach to income generation

Designed with income generation in mind, this series of ETFs offers a number of potential benefits that may help address the yield enhancement and volatility management needs of investors.


Nationwide Risk-Managed Income ETFs seek to provide investors:

High monthly income generation

A measure of downside protection

Capital appreciation

Nationwide Risk-Managed Income ETFs are income solutions that target high current income with less risk relative to traditional income-focused investments. The ETFs seek to provide investors with a measure of downside protection in falling markets and potential upside participation based on their exposure to some of the most well-known domestic indexes.

Monthly Distribution Information (As of 8/31/22)

Ex-date
NAV
Distribution
Yield
1
12-Month
Trailing Yield
2
Monthly
Distribution
(%/share)
Monthly
Distribution

($/share)
30-Day
SEC Yield
Fact
Sheet
NUSI
Nationwide Nasdaq-100®
Risk-Managed Income ETF
$20.50 7.85% 9.28% 0.65% $0.13409 0.17%
NSPI
Nationwide S&P 500®
Risk-Managed Income ETF
$21.46 7.04% -- 0.59% $0.12598 1.09%
NDJI
Nationwide Dow Jones®
Risk-Managed Income ETF
$21.70 7.06% -- 0.59% $0.12768 1.63%
NTKI
Nationwide Russell 2000®
Risk-Managed Income ETF
$21.83 7.00% -- 0.58% $0.12732 0.86%

For each Risk-Managed Income ETF's regulatory documents, standardized performance, and additional information, please click on the corresponding ticker: NUSI | NDJI | NSPI | NTKI

To learn about the sourcing and treatment of NUSI's monthly distributions, click here.

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.

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.


How do our ETFs compare with their underlying indexes?

YTD Performance (as of 8/31/22)

Distribution Yield & 30-Day Volatility (as of 8/31/22)

A potential income-enhancing complement to existing core portfolio allocations

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. Returns for periods of less than one year are not annualized. 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.

Nationwide shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total returns are calculated using the daily 4:00 p.m. EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Sources: Bloomberg (2022), Morningstar (2022), U.S. Bank (2022).

YTD Performance (as of 8/31/22)

Distribution Yield & 30-Day Volatility (as of 8/31/22)

A potential income-enhancing complement to existing core portfolio allocations

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. Returns for periods of less than one year are not annualized. 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.

Nationwide shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total returns are calculated using the daily 4:00 p.m. EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Sources: Bloomberg (2022), Morningstar (2022), U.S. Bank (2022).

YTD Performance (as of 8/31/22)

Distribution Yield & 30-Day Volatility (as of 8/31/22)

A potential income-enhancing complement to existing core portfolio allocations

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. Returns for periods of less than one year are not annualized. 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.

Nationwide shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total returns are calculated using the daily 4:00 p.m. EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Sources: Bloomberg (2022), Morningstar (2022), U.S. Bank (2022).

YTD Performance (as of 8/31/22)

Distribution Yield & 30-Day Volatility (as of 8/31/22)

A potential income-enhancing complement to existing core portfolio allocations

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. Returns for periods of less than one year are not annualized. 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.

Nationwide shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total returns are calculated using the daily 4:00 p.m. EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Sources: Bloomberg (2022), Morningstar (2022), U.S. Bank (2022).

Investment Strategy Overview

Managed by Harvest Volatility Management, an experienced derivative asset management firm, the ETFs are driven by an innovative investment approach that utilizes a dynamic, risk-managed, net-credit collar option strategy.


Purchase all underlying stocks in the specific 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 the Index.

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

How the investment strategy is intended to perform


In a rising market:

In a rising stock market, total return for Nationwide Risk-Managed Income ETFs may come from capital appreciation of the underlying stock portfolio in addition to income typically generated by the premium received from the sale of the covered call options and dividends received from the Funds’ equity positions. However, the covered call options used as part of the net-credit collar strategy may limit upside growth potential. The Fund managers can close out certain call options as a means of potentially capturing gains in the underlying equity portfolio when indicated by the systematic, rules-based model.

Intended to illustrate how Nationwide Risk-Managed Income ETFs may perform in varying market cycles and are for illustrative purposes only. Actual performance may vary.

Potential Components of Total Return:

Contributors
  • Capital appreciation
  • Short call option premium (up until the strike price)

Detractors
  • Potentially capped equity portfolio due to the short call option liability*
  • Long put option decay into options expiration

*The Fund managers can close out certain call options as a means of potentially capturing gains in the underlying equity portfolio when indicated by the systematic, rules-based model.

In a sideways market:

In a sideways market, during which the equity benchmark remains relatively static, the sale of the call option may aid in supporting the generation of premium, which the investor retains. Additionally, the constant hedge may provide a measure of downside protection against potential losses in the equity portfolio.

Intended to illustrate how Nationwide Risk-Managed Income ETFs may perform in varying market cycles and are for illustrative purposes only. Actual performance may vary.

Potential Components of Total Return:

Contributors
  • Limited capital appreciation
  • Short call option premium is captured
Detractors
  • Decay of the long put into options expiration

In a moderately declining market:

In a moderately declining market, the measure of downside protection potentially offered by Nationwide Risk-Managed Income ETFs may come from the value of either the short call or the long put. Prior to options expiration, the moneyness of the options (i.e., short call liability or long put value) may contribute to the potential profit or loss of the Funds. Each month, on the Thursday before options expiration, the short call and long put are closed, and a new net-credit collar is set until the next roll period. If the equity portfolio depreciates above the put strike when the options are reset, the long put will expire worthless and may not offer downside protection.

Intended to illustrate how Nationwide Risk-Managed Income ETFs may perform in varying market cycles and are for illustrative purposes only. Actual performance may vary.

Potential Components of Total Return:

Contributors
  • Short call option premiums
  • Potential put option value increase as the market declines prior to options expiration
Detractors
  • Equity depreciation above the put strike price, rendering the put option worthless at the expiration date

In steeply declining market:

In a steeply declining market, Nationwide Risk-Managed Income ETFs are designed to seek higher total return than either other covered call strategies or the broad equity market. If the value of the underlying equity index declines beyond the level of the protective put, portfolio losses will be limited, thereby preserving the value of the Funds.

Intended to illustrate how Nationwide Risk-Managed Income ETFs may perform in varying market cycles and are for illustrative purposes only. Actual performance may vary.

Potential Components of Total Return:

Contributors
  • Short call option premium is captured
  • Put option value, which may increase as the market declines prior to options expiration
  • Preservation of underlying fund value when the market declines beyond the put strike price
Detractors
  • Equity depreciation until the portfolio declines beyond the put option strike price



Which of the ETFs may be right for your clients?

By providing exposure to some of the most well-known domestic indexes, Nationwide Risk-Managed Income ETFs may provide investors with greater optionality for managing their exposure to different sources of risk and return while targeting secular opportunities as part of a diversified, core income allocation.

Ticker Index
NUSI Nasdaq-100 Index® Comprised of growth-oriented companies at the forefront of innovation that are redefining modern day industrials.
NSPI S&P 500 Index® Widely regarded as a diversified gauge of the large-cap U.S. equity market.
NDJI Dow Jones Industrial Average® A blue-chip index of companies historically recognized for their financial stability and consistent dividends.
NTKI Russell 2000 Index® A comprehensive barometer of the small-cap segment of the U.S. equity market.

Potential Benefits

Fundamentally designed with income generation in mind, NUSI seeks to offer several benefits that may address the yield enhancement and volatility management needs of investors:

High Monthly Income Generation

Reduced duration risk and interest rate sensitivity

Capital appreciation from equity participation

Volatility and partial downside risk mitigation


Potential Use Cases in a Portfolio

Interested in more information about the Nationwide Risk-Managed Income ETFs? Let us know how we can help.

*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. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. 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. To obtain the most recent month-end performance, go to etf.nationwide.com or call 1-877-893-1830.


For standardized performance and detailed holdings for each fund, please click on the corresponding ticker: NUSI | NDJI | NSPI | NTKI. The gross expense ratio for each fund is 0.68%.


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.


Call Option (source: Investopedia): Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset.


Covered Call (source: Investopedia): A covered call refers to transaction in the financial market in which the investor selling call options owns the equivalent amount of the underlying security. To execute this an investor holding a long position in an asset then writes (sells) call options on that same asset to generate an income stream. The investor's long position in the asset is the "cover" because it means the seller can deliver the shares if the buyer of the call option chooses to exercise.


Nationwide shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total returns are calculated using the daily 4:00pm EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.


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.


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.


KEY RISKS: The Funds are 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 Funds may invest in more-aggressive investments such as derivatives (which create investment leverage and illiquidity and are highly volatile). The Funds 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 Funds expects to invest a portion of their 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. not be invested fully in the securities of the index or may hold securities not included in the index.The Funds 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 Funds and greater tax liabilities for shareholders. The Funds may concentrate on specific sectors or industries, subjecting it to greater volatility than that of other ETFs. The Funds 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 Funds intend to invest in a variety of securities and instruments, the Funds will be considered nondiversified. NUSI 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). Diversification does not assure a profit nor protect against loss in a declining market.


Dow Jones Industrial Average®: A price-weighted index composed of 30 “blue-chip” U.S. stocks. The index covers all industries except transportation and utilities, respectively.


The Dow Jones Industrial Average® is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Nationwide Fund Advisors. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones®, Dow Jones Industrial Average®, DJIA® and The Dow® are registered trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Nationwide Fund Advisors. The Nationwide Dow Jones® Risk-Managed Income ETF (“NDJI”) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions or interruptions of the Dow Jones Industrial Average®.


Nasdaq-100® Index: An unmanaged, modified market capitalization-weighted index of the equity securities issued by 100 of the largest non-financial companies, with certain rules capping the influence of the largest components. The issuer of the security’s primary U.S. listing must be exclusively listed on the Nasdaq Global Select Market or the Nasdaq Global Market.


Nasdaq® and the Nasdaq-100® are registered trademarks of Nasdaq, Inc. (which, with its affiliates, is referred to as the "Corporations") and are licensed for use by Nationwide Fund Advisors. The Nationwide Nasdaq-100® Risk-Managed Income ETF (“NUSI”) has not been passed on by the Corporations as to their legality or suitability. NUSI is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT.


Russell 2000® Index: An unmanaged index that measures the performance of the small-capitalization segment of the U.S. equity universe.


FTSE Russell (“Russell”) is the Index Provider for the Russell 2000® Index (“Russell 2000®” or the “Index”). Russell is not affiliated with the Fund, Nationwide Fund Advisors, the Distributor nor any of their respective affiliates. Nationwide Fund Advisors has entered into a license agreement with Russell to use the Russell 2000®.


The Nationwide Russell 2000® Risk-Managed Income ETF (“NTKI”) has been developed solely by Nationwide Fund Advisors. NTKI is not in any way connected to nor sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the Russell 2000® vest in the relevant LSE Group company which owns the Index. “Russell®” is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of reliance on or any error in the Index or (b) investment in or operation of NTKI. The LSE Group makes no claim, prediction, warranty nor representation either as to the results to be obtained from NTKI or the suitability of the Index for the purpose to which it is being put by Nationwide Fund Advisors.


S&P 500® Index: An unmanaged, market capitalization-weighted index of 500 stocks of leading large-cap U.S. companies in leading industries; gives a broad look at the U.S. equities market and those companies’ stock price performance.


The S&P 500® index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Nationwide Fund Advisors. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Nationwide Fund Advisors. The Nationwide S&P 500® Risk-Managed Income ETF (“NSPI”) is not sponsored, endorsed, sold nor promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions or interruptions of the S&P 500® Index.


Nationwide Fund Advisors (NFA) is the registered investment advisor to Nationwide ETFs, which are distributed by Quasar Distributors LLC. NFA is not affiliated with any distributor, subadviser, or index provider contracted by NFA for the Nationwide ETFs. Nationwide is not an affiliate of third-party sources such as Morningstar, Inc or MSCI. Representatives of the Nationwide ETF Sales Desk are registered with Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, Ohio.


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