Do you have questions about your rate of return? We've compiled some of the most frequently asked questions to help you understand what it's all about. If you have a question that isn't listed here, please call your financial professional.

What does rate of return mean?
Your rate of return shows the total gain or loss for your account value over a period of time, expressed as a percentage. If you're comparing a fixed annuity to a market index, keep in mind that the rate of return for a fixed annuity has no direct relationship with market indexes or market-risk based products and is provided only as a point of reference.

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Should I worry if my rate of return is lower than one or more of the indexes?
Not necessarily. If you're concerned about your personal rate of return, talk with your financial professional.

If you're comparing a fixed annuity to a market index, keep in mind that the rate of return for a fixed annuity has no direct relationship with market indexes or market-risk based products and is provided only as a point of reference. Investing for retirement is something that takes years, not months. Don't let short-term returns affect your long-term strategy. Market indices have been provided for comparison purposes only; they are unmanaged and no fees or expenses have been reflected. Individuals cannot invest directly in an index.

Before making changes to your investment portfolio, consider:

  • Your investment objectives
  • Time horizon
  • Risk tolerance
  • Personal financial situation

Investing involves market risk, including possible loss of principle and past performance is no guarantee of future results.

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How is my rate of return calculated?
The simplest explanation is that we calculate the percentage of change in your account over a specific period of time. The calculation also considers deposits, withdrawals or fund transfers during the period. The timing of those transactions can have a big impact on your rate of return.

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Why doesn't my rate of return on the website match my statement?
We update your rate of return on our website at the end of each month. So you see the rate for the end of the previous month.

The rate of return on your statement is current as of the date the statement was printed.

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Why is my rate of return different from the rate of return for the funds I am invested in?
Many situations can result in a difference:

  • Reporting periods for your account and funds are usually different
  • You transferred funds
  • You made contributions, withdrew funds or took a loan
  • You had fees or deductions
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Why is my rate of return missing for one or more periods?
If we don't provide a rate of return for a certain period, it's because we don't have enough data to calculate it. For instance, if you opened your account three years ago, you won't have a five-year return because we don't have five years of data to use.

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What does inception date mean?
Your inception date is the date on which your account became active.

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Why has my inception date changed?
It doesn't happen often, but sometimes we have to correct transactions or account information. If this happens to your account, the inception date will change to the date the error was corrected.

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When is my rate of return updated?
We update your personal rate of return once a month, about five business days after month-end.

If you're a new investor, your personal rate of return will display after your account is one full calendar month old. For example, if you opened your account on May 15, you would see your results a few days into July.

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Why can't I compare my since inception rate of return against an index?
We provide rate of return information to help you compare your returns with returns for indexes during the same period. The since inception rate of return is calculated from the actual purchase date, so it usually covers a partial month. Rates of return for indexes are calculated based on a full month of activity, so it wouldn't be valid to compare the two. If you're comparing a fixed annuity to a market index, keep in mind that the rate of return for a fixed annuity has no direct relationship with market indexes or market-risk based products and is provided only as a point of reference.

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How do I choose an index for comparison?
You probably won't find a single index that's a perfect comparison for your account. Instead, look at several indexes to get a feel for how your account's performance compares to the market.

You'll want to compare your account with an index that has a focus similar to your account. For instance, if you're invested wholly in bonds, it may not be useful to compare your personal rate of return to the S&P 500. If you're comparing a fixed annuity to a market index, keep in mind that the rate of return for a fixed annuity has no direct relationship with market indexes or market-risk based products and is provided only as a point of reference.

Keep in mind that:

  • Investing internationally involves risks that you probably won't encounter when investing in the U.S., such as currency fluctuation, political risk, differences in accounting and the limited availability of information
  • Stocks of small or emerging companies may be less liquid than those of larger, established companies and may be subject to greater price volatility and risk than the overall stock market
  • Portfolios that invest in high-yield securities are subject to greater credit risk and price fluctuations than portfolios that invest in higher-quality securities
  • Funds that concentrate in a specific sector or focus on a relatively small number of securities may be subject to greater volatility than a more diversified investment
  • Funds that invest primarily in securities of the U.S. government and its agencies are not guaranteed by those institutions
  • Real estate investing is subject to the general risks of the real estate business including sensitivity to economic and business cycles, changing demographic patterns and government actions
  • Market indices have been provided for comparison purposes only; they are unmanaged and no fees or expenses have been reflected. Individuals cannot invest directly in an index
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What are the differences between the indexes?

Index Composition Definition
Bloomberg US Aggregate Bond TR USD US Fixed Income An unmanaged, market value-weighted index of U.S. dollar-denominated, investment-grade, fixed-rate, taxable debt issues, ​which ​includes Treasuries, government-related and corporate securities, mortgage-​backed ​securities (agency fixed-rate and hybrid adjustable-rate ​mortgage pass-throughs), asset-backed ​securities and commercial ​mortgage-backed ​securities (agency and non-agency).
Citigroup USBIG Government/Corporate 1-3 Year Short Term Bonds An unmanaged index comprised of government sponsored and corporate bonds which have maturities between one and three years.
Citigroup Treasury Bill 3 Month USD Cash An unmanaged index that is generally representative of 3-month Treasury bills; consists of an average of the last 3-month Treasury bill issues (excluding the current month-end bill).

Dow Jones US Total Full Cap TR USD Broad Market US Equities Measures the performance of all U.S. common equity securities. It serves as an index of all stock trades in the United States.

MSCI EAFE ID International Equities The Morgan Stanley Composite Index measures the overall performance of equities in Europe, Australia and the Far East. Created in 1969, the EAFE Index is widely recognized as one of the primary measures of international stock market performance for U.S. investors.
Russell 2000 TR USD Small Capitalization US Equities Consists of the smallest 2,000 companies in the Russell 3000 index, representing approximately 7% of the Russell 3,000 total market capitalization.
S&P MidCap 400/Citi Growth TR Mid Capitalization US Equities Includes approximately 10% of the capitalization of U.S. equity securities, comprised of stocks in the middle capitalization range. Any mid-cap stocks already included in the S&P 500 are excluded from this index.
S&P 500 TR Large Capitalization US Equities Includes 500 widely held stocks that measure the movement of the largest companies, chosen by market size, liquidity and industry group representation — including stocks of industrial, financial, utility and transportation companies.

S&P Indexes are trademarks of Standard & Poor's and have been licensed for use by Nationwide Fund Advisors LLC. The Products are not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's does not make any representation regarding the advisability of investing in the Product.

Russell Investment Group is the source and owner of the trademarks, service marks and copy rights related to the Russell Indexes. The Fund is not sponsored, endorsed, or promoted by Russell, and Russell bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. Russell® is a trademark of Russell Investment Group.

Bloomberg® and its indexes are service marks of Bloomberg Finance L.P. and its affiliates including Bloomberg Index Services Limited, the administrator of the index, and have been licensed for use for certain purposes by Nationwide. Bloomberg is not affiliated with Nationwide, and Bloomberg does not approve, endorse, review or recommend this product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any date or information relating to this product.

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