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Risk-Managed Income ETFs

The Nationwide Risk-Managed Income ETFs seek to provide investors with:

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 Nasdaq-100® Risk-Managed Income ETF (NUSI)
ETF strategy: Income-focused
Benchmark: CBOE S&P 500 Zero-Cost Put Spread Collar Index
Subadviser: Harvest Volatility Management

Nationwide S&P 500® Risk-Managed Income ETF (NSPI)
ETF strategy: Income-focused
Benchmark: CBOE S&P 500 Zero-Cost Put Spread Collar Index
Subadviser: Harvest Volatility Management

Nationwide Dow Jones® Risk-Managed Income ETF (NDJI)
ETF strategy: Income-focused
Benchmark: CBOE S&P 500 Zero-Cost Put Spread Collar Index
Subadviser: Harvest Volatility Management

Nationwide Russell 2000® Risk-Managed Income ETF (NTKI)
ETF strategy: Income-focused
Benchmark: CBOE Russell 2000 Zero-Cost Put Spread Collar Index
Subadviser: Harvest Volatility Management


A new approach
to income generation


The Nationwide Risk-Managed Income ETFs potentially offer a number of benefits that may address the yield enhancement and volatility management needs of investors.

Investment strategy overview

Managed by Harvest Volatility Management, an experienced derivative asset management firm, the Nationwide Risk-Managed Income ETFs offer innovative alternatives to traditional income investing by employing a dynamic, risk-managed, net credit collar.

How risk-managed income ETFs may add value within a portfolio

Nationwide Risk-Managed Income ETFs are designed for income-focused investors seeking to lower their exposure to market volatility and minimize the potential for losses during down markets. They can be used to enhance and diversify core income-oriented portfolio allocations in the following ways:

As a supplement to current income strategies during cycles of low or falling yields

As a less volatile strategy for maintaining equity exposure during volatile market periods, where the protective put options offer a degree of downside protection

As a strategy for managing the risk of rising interest rates and the possibility of economic recession as an alternative to a traditional bond investment

As a complement to a traditional 60% equity/40% bond portfolio, potentially enhancing the yield generated by the bond allocation while reducing potential volatility of the equity allocation

Want to work with a financial professional?

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 p.m. ET 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 Funds’ returns may not match nor achieve a high degree of correlation with the return of the respective underlying index. Diversification does not assure a profit nor protect against loss in a declining market.

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.

Expense ratios are as of the most recent prospectus. Please see the Fund prospectus for more details.

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KEY RISKS

The Nationwide Nasdaq-100® Risk-Managed Income ETF (“NUSI”), 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”) (collectively, the “Risk-Managed Income ETFs”) 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 Risk-Managed Income ETFs are subject to the risks of investing in foreign securities (current fluctuations, political risks, differences in accounting and limited availability of information, all of which are magnified in emerging markets). The Risk-Managed Income ETFs may invest in more-aggressive investments such as derivatives (which create investment leverage and illiquidity and are highly volatile). The Risk-Managed Income ETFs employ 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 Risk-Managed Income ETFs’ investment strategy may depend on the effectiveness of the subadviser’s quantitative tools for screening securities and on data provided by third parties. The Risk-Managed Income ETFs expect 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. Frequently, the Risk-Managed Income ETFs may buy and sell portfolio securities and other assets to rebalance their exposure to various market sectors. Higher portfolio turnover may result in higher levels of transaction costs paid by the Risk-Managed Income ETFs and greater tax liabilities for shareholders. The Risk-Managed Income ETFs may concentrate on specific sectors or industries, subjecting them to greater volatility than that of other ETFs.

The Risk-Managed Income ETFs 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 Funds’ value and total return. Although the Risk-Managed Income ETFs intend to invest in a variety of securities and instruments, the Risk-Managed Income ETFs will be considered non-diversified. Additional risks include: collared options strategy risk, correlation risk, derivatives risk, foreign investment risk, industry concentration risk, and market capitalization risk (large-capitalization investing risk for NUSI, NSPI, and NDJI; small-capitalization investing risk for NTKI).

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DEFINITIONS

At-the-money (ATM) refers to a situation in which an option’s strike price is identical to the price of the underlying security. 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 the specified price within a specific time period. The stock, bond or commodity is called the underlying asset. Net credit collar consists of simultaneously selling a call option and buying a put option against 100 shares of long stock. Buying a put option against long shares eliminates the risk of the shares below the put strike, while selling a call option limits the profit potential of shares above the call strike. By selling a call option, the cost of buying a put option is reduced. When structured properly, the short call can cover the entire cost of buying the put option, resulting in a limited-risk stock position without paying for the insurance. Out-of-the-money (OTM) is used to describe an option that has only extrinsic value. A call option is considered OTM if the prevailing market price of the underlying security is lower than the strike price of the call. Conversely, a put option is OTM if the prevailing market price of the underlying security is above the put’s strike price. Protective put is a risk-management strategy using options contracts that investors typically employ to guard against the loss of owning a stock or asset. The hedging strategy involves an investor buying a put option for a fee, called a premium.

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INDEXES

CBOE Russell 2000 Zero-Cost Put Spread Collar Index: An index designed to track the performance of a hypothetical portfolio of securities composed of a 2.5%-5% put spread of options on the Russell 2000 (RUT options), and which seeks to offset the already low cost of the put position with a long RUT call at a strike such that the call premium offsets the cost of the put spread.

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CBOE S&P 500 Zero-Cost Put Spread Collar Index: An index designed to track the performance of a hypothetical option trading strategy that 1) holds a long position indexed to the S&P 500 Index; 2) on a monthly basis buys a 2.5% - 5% S&P 500 Index (SPX) put option spread; and 3) sells a monthly out-of-the-money (OTM) SPX call option to cover the cost of the put spread.

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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®.

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Nasdaq-100® Index: A rules-based, market capitalization-weighted index of the 100 largest, most actively traded U.S. companies listed on the Nasdaq stock exchange. The Index includes companies from various industries except for the financial industry, such as commercial and investment banks. These nonfinancial sectors include retail, biotechnology, industrial, technology, health care and others.

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 its 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.

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Russell 2000® Index: An unmanaged index that seeks to measure the performance of the small-cap 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.

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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 or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties makes 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.

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

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