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Overview

Objective

Seeks total return, consisting of capital appreciation and/or income.

Enhanced value: Actively managed relative-value strategy, bolstered by a derivative overlay designed to enhance bull market returns and lessen downside volatility. 

Key features

  • Unique dividend approach: Aims to combine sustainable high current income with solid dividend growth without sacrificing value
  • High-conviction, excess-return-driven-process: 50-80 stocks designed to deliver positive benchmark and peer relative results
  • Derivative overlay: Employs an overlay that seeks to enhance returns by implementing modest leverage through S&P 500 Index® & Bond Futures

Fund documentation

Additional resources

Visit the site where the prospectus, reports, and other regulatory documents are located.

Strategy overview

The Nationwide BNY Mellon Dynamic U.S. Equity Income Fund primarily focuses on delivering alpha through a relative-value approach that seeks a dividend yield greater than the broad U.S. equity market, but is enhanced by a derivative overlay that deploys S&P 500® Index and U.S. Treasury futures that seek to magnify returns in a bull market and lessen volatility in a down market. The team's all-weather, fundamental and highly risk-controlled investment process targets a balance of dividend yield and dividend growth to maximize total return and generate consistent performance. Its proprietary bottom-up research allows the team to assess a company's ability and willingness to pay dividends, while also focusing on equities with attractive valuations relative to the market, sector and stock history. The valuation sensitivity and income generation is designed for greater downside protection.

The team believes successful investing is achieved through a philosophy that is value-oriented, research-driven and risk-controlled:

Value-oriented

  • Focus on equity securities with attractive valuations relative to the market, sector and stock history
  • Avoid the value trap and "being early" by combining traditional valuation measures with companies that exhibit business improvement and strong fundamentals

Research-driven

  • Use proprietary fundamental research resources that understand the past but are focused on the future
  • Recognize that one size does not fit all; be flexible in performing analyses so as to solve for the right company, sector and macro variables

Risk-controlled

  • Employ risk controls at all levels of the portfolio-construction process to minimize unintended exposures and ensure performance is driven by stock selection
  • Set up/down price targets ahead of establishing new positions

Fund management

Portfolio management

BNY Investments Newton logo

BNY Investments Newton

BNY Investments Newton seeks to deliver strong investment outcomes to its clients by taking an active, multidimensional and engaged approach, applied across four key disciplines: income and value equities, growth and core equities, specialist equities and multi-asset strategies.

BNY Investments Newton is the name for a group of affiliated companies that provide investment management services under the trading name of 'Newton' or 'Newton Investment Management'. Investment management services are provided in the United Kingdom by Newton Investment Management Ltd (NIM), in the United States by Newton Investment Management North America LLC (NIMNA), and in Japan by Newton Investment Management Japan Limited (NIMJ). All firms are indirect subsidiaries of The Bank of New York Mellon Corporation ('BNY').

Founded: 2021

Location: Boston, MA

Assets Under Management (AUM): $82.7 Billion (as of 6/30/2026)

Management team

John C. Bailer photo

John C. Bailer, CFA

Executive Vice President, Portfolio Manager

Investing since : 1992
Fund tenure since: 2019
Education: MS, Boston College; BS, Babson College
Brian C. Ferguson photo

Brian C. Ferguson

Executive Vice President, Portfolio Manager

Investing since: 1990
Fund tenure since: 2019
Education: MBA, Columbia Business School; BA, Bucknell University
Keith Howell Jr. photo

Keith Howell, Jr., CFA

Portfolio Manager, Equity Income Team

Investing since : 2006
Fund tenure since: 2022
Education: AB, Harvard University
James Stavena photo

James Stavena

Managing Director, Portfolio Manager

Investing since: 1991
Fund tenure since: 2020
Education: MBA, Rice University; BA, Trinity University
Torrey Zaches photo

Torrey Zaches, CFA

Director, Portfolio Manager

Investing since : 1994
Fund tenure since: 2023
Education: MBA, University of Southern California; BA, University of California, Santa Barbara
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Performance

Average annual returns
(as of )

Important disclosure

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. Current performance may be lower or higher than the performance data quoted.

Performance returns assume the reinvestment of all distributions. Returns for periods less than one year are not annualized. Total returns reflect a contractual expense limitation for direct annual Fund expenses for all classes for certain periods since inception, without which returns would have been lower. Pre-inception historical performance for newer share classes is based on the corresponding share class performance of a Fund's predecessor fund. If no predecessor Fund applies, historical performance is based on that of the longest existing share class, adjusted for sales charges if applicable.

Calendar year returns
(as of )

Growth of 10K
(as of )

Fees, expenses and minimums

Important disclosure

The expense ratios are as of the most recent prospectus. The difference between gross and net operating expenses reflects contractual fee waivers in place through March 2, 2027.

The Nationwide Mutual Funds and NFA entered into a written contract limiting annual fund operating expenses to 0.60% until at least March 2, 2027. Under the agreement, the expense cap applies to all share classes (excluding 12b-1 fees). Please see the Fund's prospectus for more details.

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Portfolio

Asset allocation
(as of )

Percentage of net assets. The net exposures are a combination of potential long and short exposures of derivatives, such as futures.


Top 10 holdings
NWALX (as of )

Holding nameWeight (%)
No holdings data available.

Holdings are provided for informational purposes and should not be deemed as a recommendation to buy or sell the securities.


Sector allocations
(as of )

Percentage of net equity assets. The net exposures are the combination of potential long and short exposures across equity, fixed income, and cash derivatives.


Portfolio characteristics
(as of )

* Portfolio Characteristics are calculated based on the Fund’s Morningstar Category Index using a rolling 3-year time period. If Inception Date of the share class is less than 3 years ago, Characteristic is not available.


Style details
(as of )

Important disclosure

The Morningstar Style Box is a nine-square grid that provides a graphical representation of the "investment style" of mutual funds as of the date noted above. For stocks and stock funds, it classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis). A darkened square in the style box indicates the weighted average style of the portfolio.


Rankings and ratings
(as of )

Fund risks

The Fund is subject to the risks of investing in equity securities, including initial public offerings (IPOs), which often are subject to greater and more unpredictable price changes than are more established stocks. The Fund may invest in more aggressive investments such as derivatives (which create investment leverage and are highly volatile). The Fund also is subject to the risks of investing in foreign securities (which are volatile, harder to price and less liquid than U.S. securities). The Fund may concentrate investments in specific industries or sectors, subjecting it to greater volatility than that of other mutual funds. The Fund uses a value style of investing, focusing on dividend-paying stocks and other investments which provide income, and may underperform other funds that use different investing styles. There is no guarantee that the issuers of the stocks held by the Fund will declare dividends in the future or that the dividends will remain at the current levels or increase over time. The success of the Fund's investment strategy may depend in part on the effectiveness of the subadviser's quantitative tools for screening securities. A previously successful strategy may become outdated or inaccurate, possibly resulting in losses. Please refer to the most recent prospectus for a more detailed explanation of the Fund's principal risks.

Distributions

Distribution information

Access important year-end information shareholders will need to prepare taxes.

[1] Russell 1000® Index: An unmanaged index that measures the performance of the stocks of the large-capitalization segment of the U.S. equity universe. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. The Fund is not sponsored, endorsed, or promoted by Russell, and Russell bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. Russell® is a trademark of Russell Investment Group.

[1] Russell 1000® Value Index: An unmanaged index that measures the performance of the large-capitalization value segment of the U.S. equity universe; includes those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth values. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. The Fund is not sponsored, endorsed, or promoted by Russell, and Russell bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. Russell® is a trademark of Russell Investment Group.

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Read this important information

Performance represents average annual total returns, assumes the reinvestment of all distributions and reflects applicable sales charges. Total returns reflect a waiver of part of each Fund's fees for certain periods since inception, without which returns would have been lower. Average annual total returns illustrate the annual compounded returns that would have produced the cumulative total return if each Fund's performance had remained constant throughout the period indicated. Returns for periods less than one year are not annualized.

Additional disclosures

Returns prior to the first offering of a specific share class of a Fund are based on the previous performance of other share classes of that Fund as noted below. This performance is substantially similar to what the specific share class would have produced because all share classes of a Fund invest in the same portfolio of securities. Performance assumes the reinvestment of all dividends and distributions. Performance has not been adjusted to reflect differences in applicable sales charges for individual classes, which if reflected may have resulted in higher or lower performance for the specific share class. Performance has been adjusted to reflect different expense levels for individual classes.

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Morningstar Ratings disclosure

Morningstar Ratings reflect risk-adjusted performance. The Morningstar RatingTM is derived from a weighted average of the performance figures associated with the Fund's 3-, 5- and 10-year (if applicable) periods.

Morningstar Ratings metrics: Morningstar Ratings are based solely on a proprietary mathematical formula based on measures of risk and performance that it recalculates each month. The ratings formula measures the amount of variation in a fund's monthly performance (excluding the effects of sales charges and loads) emphasizing downward variations and rewarding consistency. Ratings are subject to change every month. The top 10% of funds in the category receive 5 stars; the next 22.5%, 4 stars; the next 35%, 3 stars; the next 22.5%, 2 stars; and the bottom 10%, 1 star.

Ratings are based on specific class performance of each fund. Current fund performance may be higher or lower, which may change a fund's star rating. Despite high ratings, funds may have experienced negative performance during the period. Performance may reflect a waiver of part of a fund's fees for certain periods since inception, without which returns would have been lower. The Morningstar Rating does not include any adjustment for sales loads.

© 2026 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.