Nationwide Announces Fund Closures

Rhea-AI Summary

Nationwide announced the closure and liquidation of Nationwide S&P 500® Risk-Managed Income ETF (NSPI), Nationwide Dow Jones® Risk-Managed Income ETF (NDJI), and Nationwide Russell 2000® Risk-Managed Income ETF (NTKI) after the close of business on Feb. 23, 2024. The decision was made after evaluating the Funds' long-term growth prospects and other factors. The last day of trading for the Funds will be Feb. 22, 2024, coinciding with the final day for creation unit orders by authorized participants.

Insights

Financial Analyst

The liquidation of the Nationwide S&P 500®, Nationwide Dow Jones® and Nationwide Russell 2000® Risk-Managed Income ETFs signifies a strategic shift for Nationwide and impacts investors in these funds. This decision likely stems from an analysis of the funds' assets under management, performance relative to peers and the competitive landscape of ETFs. Investors may interpret this as a lack of confidence in the funds' ability to attract capital and deliver competitive returns. This could influence the market by reallocating investments to other funds or asset classes. It's crucial to assess the liquidation terms and potential tax implications for investors, as well as the timing of the liquidation relative to market conditions.

Market Research Analyst

This development points to the broader trends in the ETF market, where fund closures are not uncommon, particularly in a saturated market with intense competition. The liquidation of these particular ETFs could indicate a shift in investor preferences, possibly towards more niche or specialized investment strategies. The closure of these funds may also reflect on the performance of the underlying indices, especially in the context of a risk-managed strategy. It's essential to analyze the market demand for such risk-managed products and how their performance aligns with investor expectations in the current economic climate.

Economist

The liquidation of the funds may be seen as a microcosm of the broader economic environment. It could suggest an underlying volatility in the market, prompting a reassessment of risk-managed strategies. The timing of the liquidation could also be influenced by macroeconomic factors such as interest rates, inflation and economic growth projections. These factors directly affect market sentiment and the performance of index-based funds. It is important to consider the economic indicators and their potential impact on similar funds and the overall ETF market.

COLUMBUS, Ohio, Jan. 19, 2024 /PRNewswire/ --Nationwide announced today that the Board of Trustees of ETF Series Solutions (the "Trust") has determined to close and liquidate the Nationwide S&P 500^® Risk-Managed Income ETF (NYSEARCA: NSPI), Nationwide Dow Jones^® Risk-Managed Income ETF (NYSEARCA: NDJI), and Nationwide Russell 2000^® Risk-Managed Income ETF (NYSEARCA: NTKI) (collectively, the "Funds") after the close of business on Feb. 23, 2024.

Nationwide recommended the liquidation and closure of the Funds following consideration of the Funds' long-term growth prospects, among other factors.

The Funds' last day of trading will be Feb. 22, 2024, which will coincide with the final day for creation unit orders by authorized participants. The Funds will begin liquidating their portfolio assets on or about Feb. 15, 2024, which may cause the Funds to increase their cash holdings and deviate from the investment objective and strategies referenced in the Funds' prospectuses. The Funds will conclude operations and promptly distribute the remaining proceeds to shareholders after Feb. 23, 2024. Shareholders who do not sell their Fund shares by this date will have their shares automatically redeemed for cash based on the applicable Fund's net asset value (NAV). Customary brokerage charges may apply to transactions to sell Fund shares. Shareholders should contact their tax advisor to discuss the income tax consequences of the liquidations.

About Nationwide 

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance.

For more information, visit www.nationwide.com.

Subscribe today to receive the latest news from Nationwide and follow Nationwide PR on X. 

Call 1-800-617-0004 to request a summary prospectus and/or a prospectus or download prospectuses at etf.nationwidefinancial.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.

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. Representatives of the Nationwide ETF Sales Desk are registered with Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio.

Nationwide, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2024

MFM-5424AO
NFA-482433-2024-01-16

Contact:
Ryan Ankrom
(740) 974-1918
ryan.ankrom@nationwide.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/nationwide-announces-fund-closures-302039496.html

SOURCE Nationwide

FAQ

What is the reason for the closure and liquidation of Nationwide Dow Jones® Risk-Managed Income ETF (NDJI)?

The decision to close and liquidate NDJI was made after evaluating the Funds' long-term growth prospects and other factors.

When will the last day of trading for Nationwide Dow Jones® Risk-Managed Income ETF (NDJI) be?

The last day of trading for NDJI will be Feb. 22, 2024.

What will happen after the close of business on Feb. 23, 2024, for Nationwide Dow Jones® Risk-Managed Income ETF (NDJI)?

After the close of business on Feb. 23, 2024, NDJI will be closed and liquidated.