Nationwide Risk-Managed Income ETF $NUSI Testing Major Support

  • Post category:Stock Trading
  • Reading time:7 mins read
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NUSI stock is testing a major two-year support level on the chart. Buzz is heating up about this major support level as analysts across the country focus in on this ETF.

When income ETFs get hit like this, that’s an immediate contraction in spending from retirees and anyone who relies on a steady stream of income from income-oriented investments.

Achieving clients’ income needs concern for 86% of advisors

On November 30, 2021, with interest rates remaining near historic lows, supply chain and workforce challenges driving continued market uncertainty and inflation on the rise, advisors are looking for additional options to generate income for their clients, and many are turning to non-traditional income strategies.

According to a recent survey of advisors and financial professionals conducted for Nationwide by ETF Trends, nearly 9 in 10 (86%) advisors are at least somewhat concerned about achieving their clients’ income needs over the next three years.

The survey additionally found that many are looking to alternative income strategies to bridge the gap for their clients. About half (46%) currently invest in alternative income strategies and 35% are considering investing in these strategies. Nearly 8 in 10 are comfortable with non-traditional income strategies for their clients.

“Income from the asset classes that investors have traditionally turned to has decreased with interest rates and the income that has been generated is likely to be impacted by inflation,” said Mark Hackett, chief of investment research of Nationwide’s Investment Management Group. “I think advisors recognize that some traditional strategies may not yield adequate income for clients in the year ahead, and that’s why they are increasingly considering additional options to generate income while seeking downside protection to help their clients diversify their portfolio.”

While advisors responded with moderate confidence in the Bloomberg U.S. Aggregate Float Adjusted Index, with 63% of them expressing expectations of annualized total return between 0-5% over the next three years, one third (34%) believe that the Agg is more likely to dip into the red instead. Advisors are not overly optimistic about how high yielding their high yield investments will be over the next three years. More than six in 10 (65%) respondents expect their high-income investments to yield a paltry 0-5%. Less than a quarter (22.5%) believe that yields will exceed 5%.

In terms of potential threats to the equity and fixed income markets, the survey found that 40% of advisors said their biggest concern in the next three years was inflation, followed by stock valuations (21%), volatility (21%) and higher interest rates (18%).

Advisors are also on the lookout for future market corrections. Only one in ten advisors (10.8%) said that they were “unconcerned” with the potential of a 20% market correction. Instead, most (55.9%) expressed that they were “somewhat concerned,” while a full third considered themselves very concerned.”

“With more moderate predictions for equity market growth in 2022, advisors realize non-traditional income strategies can be an option for their clients to address current and future market conditions,” said Hackett.

Nationwide introduced its own alternative income strategy in late 2019, the Nationwide Risk-Managed Income ETF (trading symbol: NUSI), which has grown to more than $650 million in assets under management in less than two years. The Fund is listed on the New York Stock Exchange and has an expense ratio of 0.68%.

Investors interested in learning more about the Nationwide Risk-Managed Income ETF should contact their financial professional or visit the website. Financial professionals interested in learning more about Nationwide ETFs can call 1-877-893-1830. To read more about the survey click here.

The ETF Trends Investment Income Survey, sponsored by Nationwide, was conducted in the fall of 2021. The survey was conducted online, with a sample size of 574 verified financial advisors.

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance.

📺 The RISKS of NUSI ETF the High Income Dividend ETF

The RISKS of NUSI ETF the High Income Dividend ETF

📉 NUSI Stock Technical Analysis

NUSI stock chart as of January 23, 2022.

Both the long and short-term trends are negative. It is better to avoid buying stocks with negative trends. When comparing the yearly performance of all stocks, NUSI is a bad performer in the overall market: 66% of all stocks are doing better. NUSI is currently making a new 52 week low. This is a very bad signal. NUSI is lagging the S&P500 Index which is trading in the middle of its 52-week range.

There is a major, two-year support zone ranging from 25.20 to 25.60. This zone is formed by a combination of multiple trend lines in multiple time frames. A break below this level could trigger panic selling.

There is a resistance zone ranging from 27.13 to 28.50. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a resistance zone ranging from 29.17 to 29.17. This zone is formed by a combination of multiple trend lines in multiple time frames.

The technical rating of NUSI is bad and it also does not present a quality setup at the moment. NUSI stock has a Setup Rating of 2 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when NUSI stock consolidates and has a Setup Rating of 8 or better.

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