Nationwide closed out the week with three additions to its lineup of risk-focused strategies.
The Nationwide S&P 500 Risk-Managed Income ETF (NSPI), the Nationwide Dow Jones Risk-Managed Income ETF (NDJI) and the Nationwide Russell 2000 Risk-Managed Income ETF (NTKI) all launched on the NYSE Arca Friday with an expense ratio of 0.68%.
The ETFs use collar strategies, or sell call options and buy put options simultaneously, on their respective indices. Holding an out-of-the-money put option gives managers an insurance policy to sell a security at a predetermined price in the case of a steep decline, but potentially limits returns due to the premium needed to buy the put.
[Look up other collared-call ETFs on our stock screener]
The trio of funds joins Nationwide’s four existing ETFs, which have just over $1.25 billion in combined assets under management. The largest by a wide margin is the Nationwide Nasdaq-100 Risk-Managed Income ETF (NUSI), which has just shy of $885 million in assets.