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Nationwide NYSE Arca Tech 100 Idx InsSvc NWJFX Sustainability

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Sustainability Analysis

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Sustainability Summary

Nationwide NYSE Arca Tech100 Idx Fd has several promising attributes that may appeal to sustainability-focused investors.

This fund lands in the 10% of strategies with the lowest ESG risk in the US Equity Large Cap Growth category, earning it the highest Morningstar Sustainability Rating of 5 globes. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, including climate change, biodiversity, product safety, community relations, data privacy and security, bribery and corruption, and corporate governance, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.

One key area of strength for Nationwide NYSE Arca Tech100 Idx Fd is its low Morningstar Portfolio Carbon Risk Score of 4.29 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy.

One potential issue for a sustainability-focused investor is that Nationwide NYSE Arca Tech100 Idx Fd doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues.

The fund has a modest level of exposure (8.08%) to companies with high or severe controversies. Companies with controversies are involved in incidents such as corruption, employee abuses, and that pose some degree of business risks to the company. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, they controversies can damage the reputation of both companies themselves and their shareholders.

ESG Commitment Level Asset Manager