Looking for an ETF Alternative to Annuities?
November 17, 2020 by Contributor
With retirement planners and retirees themselves scrambling for more income, annuities are getting more looks. However, investors can shore up income streams and complement annuities with the Nationwide Risk-Managed Income ETF (NYSEArca: NUSI).
NUSI is an actively managed portfolio of stocks included in the Nasdaq-100 Index and an options collar. Per index rules, the fund only invests in the top 100 largest by market cap, nonfinancial stocks listed on NASDAQ. A collar strategy involves selling or writing call options and buying put options, thus generating income to hedge some downside risk. The strategy seeks to generate high current income monthly from any dividends received from the underlying stock and the option premiums retained.