NTKI — Nationwide Russell 2000 Risk-Managed Income ETF
Data updated: 2024-01-26
NTKI — Nationwide Russell 2000 Risk-Managed Income ETF. United States Small Cap Blend / Core Equity. Holdings, fees, performance and SEC filings.
NTKI Fund Overview
NTKI — Nationwide Russell 2000 Risk-Managed Income ETF is a US ETF managed by ETF Series Solutions, categorised as United States Small Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US ETF
- Manager: ETF Series Solutions
- Category: United States Small Cap Blend / Core Equity
- Assets under management: $12.17M
- 1-year return: -0.7%
- Ticker: NTKI
- SEC CIK: 0001540305
- SEC series ID: S000074525
- Share class ID: C000232479
NTKI Investment Objective and Strategy
Nationwide Russell 2000 Risk-Managed Income ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ETF Series Solutions.
Investment objective
The Nationwide Russell 2000 Risk-Managed Income ETF (the Fund) seeks current income with downside protection.
Principal investment strategy
The Fund is an actively-managed exchange-traded fund (ETF) that seeks to achieve its investment objective principally by investing in (i) the Vanguard Russell 2000 Index Fund ETF Shares (VTWO) (the Underlying ETF), which seeks to track the performance of the Russell 2000 Index (the Russell 2000 or the Reference Index) that measures the investment return of U.S.-listed small-capitalization equities, and (ii) an options collar ( i.e. , a mix of written (sold) call options and long (bought) put options) on the Russell 2000. The Fund seeks to generate high current income on a monthly basis from a combination of the dividends received from the Funds Underlying ETF holdings and the premiums earned from the options collar. The options collar seeks to generate a net-credit by receiving premium from the sale of the call options that is greater than the cost of buying the protective put options.
The options collar is designed to reduce the Funds volatility and provide a measure of downside protection. The Russell 2000 measures the performance of approximately 2,000 U.S. small capitalization companies. As of September 30, 2023, the Russell 2000 had significant exposure to companies in the financials, health care, and industrials sectors. The Fund, through its investment in the Underlying ETF, will concentrate its investments (i.e., hold more than 25% of its total assets) in a particular industry or group of industries to approximately the same extent that the Reference Index concentrates in an industry or group of industries. The Funds sub-adviser generally utilizes a proprietary, systematic rules-based model to manage the Funds options positions in an objective, manner, and the model may signal the written call options should be closed prior to expiration to potentially capture gains and minimize losses due to the movement of the Russell 2000 ( e.g.
, after an increase in the Russell 2000, the model may indicate that the short call should be closed so the Fund can capture more upside potential in the reference asset, or the model may determine most of the premium derived from the sale of the call has been captured due to a falling market). The Funds options collar strategy typically consists of two components: (i) selling call options on the Russell 2000 or another reference asset representing U.S. equity securities on up to 100% of the value of the equity securities held by the Fund to generate premium from such options, while (ii) simultaneously reinvesting a portion of such premium to buy put options on the same reference asset(s) to hedge or mitigate the downside risk associated with owning equity securities. Call Options . A written (sold) call option gives the seller the obligation to sell shares of the reference asset at a specified price (strike price) until a specified date (expiration date).
The writer (seller) of the call option receives an amount (premium) for writing (selling) the option. In the event the reference asset appreciates above the strike price and the holder exercises the call option, the Fund will have to pay the difference between the value of the reference asset and the strike price or deliver the reference asset (which loss is offset by the premium initially received), and in the event the reference asset declines in value, the call option may end up worthless and the Fund retains the premium. The call options written by the Fund will be collateralized by the Funds equity holdings at the time the Fund sells the options. Put Options . When the Fund purchases a put option, the Fund pays an amount (premium) to acquire the right to sell shares of a reference asset at a strike price until the expiration date.
In the event the reference asset declines in value below the strike price and the Fund exercises its put option, the Fund will be entitled to receive the difference between the value of the reference asset and the strike price (which gain is offset by the premium originally paid by the Fund), and in the event the reference asset closes above the strike price as of the expiration date, the put option may end up worthless and the Funds loss is limited to the amount of premium it paid. The options purchased or sold by the Fund will typically have an expiration date approximately one-month from the time of purchase or sale. Options are rolled the day before option expiration, which is the third Friday of each month. The written calls and purchased puts for the new collar are reset to current market levels.
The Fund expects the total value of the call options and the total value of the put options to each be up to 100% of the Funds net assets. The Fund will use a portion of the premium received from writing call options to purchase put options. Call options written by the Fund will typically have a strike price that is at, near, or higher than the current price of the reference asset, and put options purchased by the Fund will typically have a strike price that is lower (in some cases, significantly lower) than the current price of the reference asset. In addition, both the call and put options will be traded on a national securities exchange and be settled in cash. The Fund is considered to be non-diversified, which means that it may invest, including through its investment in the Underlying ETF, more of its assets in the securities of a single issuer or a smaller number of issuers, than if it were a diversified fund.
Under normal circumstances, at least 80% of the Funds net assets, plus borrowings for investment purposes, will be invested in securities, or derivative instruments linked to securities, of companies that are included in the Funds Reference Index.
NTKI Holdings
Top 3 holdings of Nationwide Russell 2000 Risk-Managed Income ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Vanguard Russell 2000 ETF | 100.29% |
| Invesco Government & Agency Po | 0.86% |
| Scilex Holding Co | 0.00% |
NTKI Portfolio Allocation
Asset-class allocation of Nationwide Russell 2000 Risk-Managed Income ETF by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 100.3% |
| Cash & Equivalents | 0.9% |
NTKI Performance
Total returns for NTKI (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -0.7% |
| 3 years (annualised) | -7.2% |
NTKI Risk Information
Risk metrics for NTKI, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 12.3%
NTKI Costs and Fees
NTKI costs about $70 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.70%
- Gross expense ratio: 0.70%
- Portfolio turnover: 9%
- Brokerage commissions: 10.22 bps of average net assets (SEC N-CEN)
NTKI Cashflows
Over the 12 months to 2023-11, Nationwide Russell 2000 Risk-Managed Income ETF had net inflows of $26.87M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2023-11 | $0 |
| 2023-10 | $0 |
| 2023-09 | $0 |
| 2023-08 | $0 |
| 2023-07 | $26.87M |
| 2023-06 | $0 |
NTKI Debt Constituents
No individual debt constituents are reported in Nationwide Russell 2000 Risk-Managed Income ETF's latest SEC N-PORT filing.
NTKI Prospectus and SEC Filings
Official Nationwide Russell 2000 Risk-Managed Income ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-12-13
- Prospectus (485BPOS) — filed 2022-12-15
- Prospectus (485BPOS) — filed 2021-12-10
- Portfolio holdings (N-PORT) — filed 2024-01-26
- Portfolio holdings (N-PORT) — filed 2023-10-30
- Portfolio holdings (N-PORT) — filed 2023-07-31
- Annual census (N-CEN) — filed 2023-11-14
- Annual census (N-CEN) — filed 2022-11-14
Related Funds
Other United States Small Cap Blend / Core Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.