COLUMBUS, Ohio - Nationwide, a leading insurance and financial services organization, has announced the upcoming liquidation of three of its exchange-traded funds (ETFs). The decision by the Board of Trustees of ETF Series Solutions to close 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) was made after reviewing the funds' long-term growth prospects among other factors.
The last day of trading for these funds will be February 22, 2024, with the final day for creation unit orders by authorized participants. Starting on or about February 15, 2024, the funds will begin the process of liquidating their portfolio assets. This action may result in the funds increasing their cash holdings and potentially deviating from their stated investment objectives and strategies.
Following the closure on February 23, 2024, the funds will distribute the remaining proceeds to shareholders. Those holding shares up to this date will have their shares automatically redeemed for cash at the net asset value (NAV). Investors are advised to consider the income tax consequences of the liquidation and may incur customary brokerage charges if they choose to sell their shares.
Nationwide, headquartered in Columbus, Ohio, is noted for its strong position in the insurance and financial services market, being rated A+ by Standard & Poor's. The company emphasizes customer-focused innovation and offers a wide range of products and services.
This liquidation event is based on a press release statement from Nationwide. Shareholders and potential investors should review their investment options carefully and may consult their tax advisors in light of this announcement.
InvestingPro Insights
As Nationwide prepares to liquidate several of its ETFs, including the Nationwide Dow Jones Risk-Managed Income ETF (NDJI), investors may find it beneficial to consider the current metrics and performance of NDJI. The ETF boasts a notable dividend yield of 7.02%, reflecting its commitment to returning value to shareholders. Additionally, NDJI is trading close to its 52-week high, with its price at 96.83% of this peak, signaling strong recent performance.
InvestingPro Tips suggest that while NDJI pays a substantial dividend, the stock trades with low price volatility, which may appeal to investors seeking stable income streams. However, the company does face challenges with weak gross profit margins and a valuation that implies a poor free cash flow yield. These factors are crucial for investors to consider when assessing the potential impact of the ETF's liquidation on their portfolios.
Investors interested in further analysis can explore additional InvestingPro Tips for NDJI, available with an InvestingPro+ subscription. The subscription is currently on a New Year sale, offering up to 50% off. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year subscription. With more tips available on InvestingPro, investors can make more informed decisions amidst the changing landscape of Nationwide's ETF offerings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.