6/9/2023 0 Comments Quasar distributorsThe options collar is intended to reduce the fund’s volatility and provide a measure of downside protection while also seeking to generate monthly income. In contrast, a call option gives its owner the right but not the obligation to buy the asset instead. A put option gives its owner the right but not the obligation to sell the underlying asset at any point during its duration. The Fund utilizes an options collar in seeking to generate monthly income a collar strategy is a strategy that entails holding shares of underlying security while simultaneously buying protective put options as well as writing calls for the same security. The Dow Jones ® was up 2.66% as of April 13, 2023, year-to-date.Īs of March 31, NDJI offered a significantly higher distribution yield than the Dow Jones ® Industrial Average Index, with a distribution yield of 7.07%, compared to the Dow Jones’ 2.08%, according to Harvest Volatility Management, the subadvisor of the fund. companies, referred to as blue-chip companies. ![]() The Nationwide Dow Jones® Risk-Managed Income ETF (NDJI) is an actively managed fund that invests in a portfolio of securities included in the Dow Jones Industrial Average ®that is weighted by price and comprises 30 well-established U.S. As of the end of February, the index was weighted heaviest towards financials, followed by healthcare, information technology, industrials, consumer cyclical, and several other smaller sector allocations. companies, tracks companies such as UnitedHealth Group, Goldman Sachs Group, Home Depot, Microsoft, and more. The Dow Jones Industrial Average ®, an index weighted by price and comprised of 30 well-established U.S. However, they are best known for growing their dividends long-term, providing a reliable source of income when the outlook for equities dims. For many equities that rely heavily on forward earnings, it’s a particularly grim outlook in the coming months, though there is opportunity in steady-performing blue-chip stocks.īlue-chip companies are those that have an established history of generating steady cash flow, exhibit stable balance sheets, and have a business model that has weathered a variety of economic environments. March’s Federal Open Market Committee meeting minutes revealed that the Fed is predicting a “shallow recession” at a minimum due to the addition of banking sector stress and tighter lending conditions alongside high interest rates and persistent core inflation. In a difficult environment for equities, there are income opportunities in the steady-performing blue-chip companies to which the Nationwide Dow Jones® Risk-Managed Income ETF (NDJI) offers exposure. ![]() The Fed anticipates recession in the second half of the year as banking sector stress complicates the inflation fight, creating the potential for a volatile and dismal outlook for markets.
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