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March 27, 2018 Newswires
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Nationwide adds to its Strategic Beta ETF offerings

PR Newswire

COLUMBUS, Ohio, March 27, 2018 /PRNewswire/ -- Nationwide has added another Strategic Beta ETF option that seeks to provide investors with improved risk-adjusted returns by enhancing diversification. The new Nationwide Maximum Diversification Emerging Markets Core Equity ETF (MXDE) is the latest Strategic Beta ETF since Nationwide launched three others in 2017.

Nationwide

"The Nationwide Maximum Diversification Emerging Markets Core Equity ETF seeks to identify the exact combination of stocks within the emerging markets universe that will maximize the diversification benefits of a portfolio while retaining the full equity risk premium," Chris Graham, chief investment officer for Nationwide Funds, said. "In other words, by building portfolios which seek to minimize idiosyncratic risk exposure from specific stock, sector, factor or country bets, this fund is expected to deliver higher risk-adjusted returns."

Financial professionals interested in learning more should call the Nationwide ETF sales desk at 1-877-893-1830 or visit http://etf.nationwide.com.

Like the Nationwide Maximum Diversification U.S. Core Equity ETF (MXDU) launched last year, the Nationwide Maximum Diversification Emerging Markets Core Equity ETF (MXDE) seeks to deliver higher risk-adjusted returns relative to market cap-weighted strategies by creating a more diversified risk allocation aimed at capturing the full equity risk premium. Both funds track an index developed by TOBAM that applies liquidity and socially responsible investment (SRI) screens in determining the investable universe. Based on a patented, proprietary mathematical formula, the TOBAM Diversification Ratio®, TOBAM weights individual stocks to minimize the correlations among holdings, resulting in the creation of the "most diversified portfolio," given a 50% active share constraint.

The benchmark for the new fund is the MSCI Emerging Market Index and the listing exchange is NYSE Arca.

"Since the end of 2015 the MSCI Emerging Market index has outperformed the S&P 500 Index by nineteen percent on a total return basis1," Graham said. "We think emerging markets are a great option to help advisors combat their clients' home bias investing and further diversify their portfolio."

In addition to the new strategic beta ETFs, Nationwide is a strategic partner to advisors, providing a comprehensive suite of subadvised mutual funds designed to help meet the unique investment goals and risk tolerances of investors. Nationwide currently manages 115 funds with approximately $65 billion in assets, excluding fund of funds.

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 U.S. and is rated A+ by both A.M. Best and Standard & Poor's. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.

1Factset

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.

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.

Beta is a measure of price variability relative to the market. Sharpe ratio is a measure of excess reward per unit of volatility.

KEY RISKS: The Funds are subject to the risks of investing in equity securities. The Funds may also be subject to the risks of investing in foreign securities (which are volatile, harder to price, and less liquid than U.S. securities). Please refer to the summary prospectus for a more detailed explanation of the Funds' principal risks. There is no assurance that the investment objective of any fund will be achieved. Diversification does not assure a profit or protect against a loss in a declining market.

TOBAM Diversification Ratio® (DR(w)) is calculated by using the weighted average volatility and volatility as follows: DR(w)=(w|σ)/σ(w).

TOBAM Maximum Diversification® USA Index and TOBAM Maximum Diversification® Emerging Markets Index data copyright ©2018, TOBAM S.A.S. All rights reserved. Maximum Diversification is a registered trademark and service mark of TOBAM S.A.S. or its affiliates ("TOBAM") and is used under license for certain purposes by Nationwide Fund Advisors. Reproduction of the TOBAM data and information in any form is prohibited except with the prior written permission of TOBAM S.A.S. Nationwide Maximum Diversification U.S. Core Equity ETF and Nationwide Maximum Diversification Emerging Markets Core Equity ETF are not sponsored, endorsed, sold or promoted by TOBAM and TOBAM makes no representation regarding the advisability of investing in such fund. TOBAM does not guarantee the accuracy or completeness of any data and information and is not responsible for any error or omission or for the results obtained from the use of such data and information. TOBAM GIVES NO EXPRESS OR IMPLIED WARRANTY, INCLUDING, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

Solactive AG is the third-party calculation agent of the TOBAM Maximum Diversification® Index Series and received compensation in that capacity. Solactive AG does not sponsor, endorse, sell, or promote any investment vehicle that is offered by any third party that seeks to provide an investment return based on the performance of any index. It is not possible to invest directly in an index.

Nationwide Fund Advisors (NFA) is the registered investment advisor to Nationwide ETFs and 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 (NISC), member FINRA, Columbus, Ohio.

Nationwide, the Nationwide N and Eagle, and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. © 2018

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

MFN-0219AO

Contact:
Jeff Whetzel(614) 249-6354
whetzej@nationwide.com

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/nationwide-adds-to-its-strategic-beta-etf-offerings-300620141.html

SOURCE Nationwide

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