NYSE® Zebra Edge® Index

A behavioral finance strategy designed to provide consistent returns

  • Objective – Aims to achieve higher returns with less risk than a traditional large-cap equity strategy
  • Approach – Quantitative low volatility
  • Holdings – U.S. large-cap equities, U.S. Treasuries, cash
  • Ticker – ZEDGENY
  • Features – Equity portfolio drawn from the 500 largest publicly traded U.S. companies1

Helpful Resources

NYSE Zebra Edge Index Overview
www.nyse.com/zedgeny

“Behavioral finance could be the key to higher returns with less risk.”

Roger G. Ibbotson, PhD.

  • Chairman and Chief Investment Officer, Zebra Capital Management
  • Professor Emeritus, Yale School of Management
  • Founder of Ibbotson Associates, now a Morningstar Company

Zebra equity selection process

zebra-selection-process

NYSE® applies a risk control methodology that makes daily adjustments to the allocations between the Zebra Equities, U.S. Treasuries and an interest-free cash account. This daily re-allocation further reduces risk when markets are volatile, moving rapidly up or down.

Sector breakdown & index weighting

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zebra-logo

Zebra Capital Management, LLC is an independent investment management firm managing equity-focused investment strategies. Founded in 2001 by Roger Ibbotson, Professor Emeritus of Finance at Yale University, Zebra has successfully combined his leading-edge research and scientific methods with decades of direct trading, risk management, and operational experience. Zebra’s strategies seek to generate superior performance without incurring additional volatility.

1 The 500 largest publicly traded companies in the United States is represented by the NYSE® U.S. Large Cap Equal Weight Index.

2 The equities with the highest volatility over the previous three months and prior year are removed, and equities with the highest trading frequency are removed.

3 Approximately 200 Zebra Equities are selected through this quarterly selection process. The selection process occurs in February, May, August and November. NYSE® applies a risk control methodology that makes daily adjustments to the allocations between the Zebra Equities, U.S. Treasuries and an interest-free cash account. This daily re-allocation further reduces risk when markets are volatile, moving rapidly up or down. While this type of strategy can lessen the impact of market downturns, it can also lessen the impact of market upturns, potentially limiting upside potential.

Not a deposit – Not FDIC or NCUSIF insured – Not guaranteed by the institution – Not insured by any federal government agency – May lose value

This material must be preceded or accompanied by the prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product prospectus contains this and other important information. Investors should read it carefully before investing. To request a copy, go to nationwide.com/prospectus or call 1-800-848-6331.

When evaluating the purchase of an annuity, your clients should be aware that annuities have limitations. They are long term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses or to fund short-term savings goals. Please read the prospectus for complete details. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty.

The NYSE® Zebra Edge® Index has been licensed by ICE Data Indices, LLC (together with its subsidiaries and affiliates, “ICE Data Indices”) to UBS AG and sub-licensed by UBS AG (together with its subsidiaries and affiliates, “UBS”) to Nationwide Life Insurance Company (“Nationwide”). Neither Nationwide nor any Nationwide Defined Protection Annuity (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by Zebra Capital Management, LLC (together with its subsidiaries and affiliates, “Zebra”), ICE Data Indices or UBS and in no event shall Zebra, ICE Data Indices or UBS have any liability with respect to the Product or the Index. Zebra, ICE Data Indices and UBS make no representations, give no express or implied warranties and have no obligations with regard to the Index, the Product, the client or other third party.

The mark NYSE® is a registered trademark of NYSE Group, Inc., Intercontinental Exchange, Inc. (“ICE”) or their affiliates and is being utilized by ICE Data Indices under license and agreement. The marks Zebra® and Zebra Edge® are registered trademarks of Zebra Capital Management, LLC, may not be used without prior authorization from Zebra Capital Management, LLC, and are being utilized by ICE Data Indices under license and agreement.

Nationwide Defined Protection is an individual single purchase payment deferred annuity with index-linked strategies issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA. Please note, the contract does not directly participate in any stock or equity investments.

Guarantees and protections referenced within are subject to the claims-paying ability of Nationwide Life Insurance Company.

Nationwide, the Nationwide N and Eagle, Nationwide is on your side, and Nationwide Defined Protection are service marks of Nationwide Mutual Insurance Company.

© 2023 Nationwide

AAM-0674AO.1 (11/22)