NUSI Profile
Nationwide
Risk-Managed Income ETF (NUSI) is an actively managed exchange-traded
fund (ETF) that aims to provide investors with income generation and
capital preservation. The fund is managed by Harvest Volatility
Management, LLC.
NUSI uses a &";covered call&"; strategy to
generate income. In this strategy, the fund buys a diversified
portfolio of large-cap stocks, and then sells call options on the
stocks to generate income. Call options give the buyer the right to
buy the underlying stock at a certain price (the &";strike price&";) at a
future date. By selling call options, the fund earns a premium, which
can be used to generate income for investors.
The fund also
uses an &";options collar&"; strategy to protect against downside risk. In
this strategy, the fund buys put options on the stocks in the
portfolio. Put options give the buyer the right to sell the underlying
stock at a certain price (the &";strike price&";) at a future date. By
buying put options, the fund can protect against a decline in the
value of the stocks in the portfolio.
Overall, NUSI aims to
provide investors with monthly income, while also protecting against
downside risk. However, it is important to note that the covered call
strategy used by the fund can limit the potential upside of the
portfolio, as the fund will not benefit from any gains in the value of
the stocks above the strike price of the call options. Additionally,
the use of options can add complexity and additional risk to the
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