Nationwide provides a wide range of insurance products, including auto, home, life, pet, farm, and commercial insurance. Wondering how to buy Nationwide stock? You can't, as it's not publicly traded. But don't worry! We'll show you similar companies you can invest in.
Is Nationwide publicly traded?
Nationwide is not publicly traded on the stock market. This means you cannot directly buy shares of Nationwide as you would with a publicly traded company such as Apple (AAPL +0.04%) or Walmart (NYSE:WMT).
Nationwide operates as a mutual company, which means it is owned by its policyholders rather than shareholders. With Nationwide and other mutual companies, policyholders benefit from profits through dividends or reduced premiums.
Publicly Traded Company
Although Nationwide is not publicly traded, there are several ways investors can gain indirect exposure to its success, including:
- Investing in companies with a similar profile to Nationwide
- Investing in companies that provide services related to Nationwide
- Investing in the insurance industry via exchange-traded funds (ETFs)
When will Nationwide IPO?
Nationwide has not announced any plans to go public. An initial public offering (IPO) would involve Nationwide selling shares to the public and being listed on a stock exchange. However, there has been no indication from the company that it intends to pursue this path in the near future. It's difficult for a mutual company to change its structure.
Alternatives to Nationwide stock
Although you can't buy shares of Nationwide, there are different companies whose stock prices might rise when Nationwide performs well because they are in the same industry or their business provides products or services to the insurance industry. Here are three companies that have ties to Nationwide's performance, providing indirect exposure to the company:
Allstate
Since you can't buy Nationwide stock, the simplest alternative would be to invest in one of Nationwide's main competitors, like Allstate (ALL +0.17%). As one of the largest publicly traded insurance companies in the U.S., Allstate boasts a diverse portfolio of insurance products and a robust financial track record. You could also gain exposure to Allstate through mutual funds and ETFs.
NYSE: ALL
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Guidewire Software
Guidewire Software (GWRE +0.27%) is a leading provider of software solutions tailored for the property and casualty (P&C) insurance industry. Its products, which include systems for underwriting, policy administration, billing, and claims management, are designed to help insurers streamline their operations, improve efficiency, and enhance customer service. Nationwide and many other major insurance companies use Guidewire's technology.
NYSE: GWRE
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Lemonade
Lemonade (LMND -5.02%) is transforming the industry with its technology-driven approach, using artificial intelligence and machine learning to streamline processes and enhance customer experience. This innovative model allows for rapid claims processing and a highly user-friendly digital platform, attracting tech-savvy, younger consumers. By investing in Lemonade, you can gain exposure to an up-and-coming company that is changing the game for insurance practices and industry standards.
NYSE: LMND
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How to invest in stocks similar to Nationwide
Follow this step-by-step guide to buy stock in companies similar to Nationwide.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
ETFs with exposure to Nationwide
For those looking for broader exposure to the insurance sector, there are several ETFs that include companies similar to Nationwide. Here are a few options:
ETF Name and Ticker | Exposure to Nationwide-Related Companies | Net Assets | Expense Ratio |
|---|---|---|---|
Vanguard Financials Index Fund ETF (NYSEMKT:VFH) | Broad exposure to the financial sector, including insurance companies | $14.25 billion | 0.09% |
Invesco KBW Property & Casualty Insurance ETF (NASDAQ:KBWP) | Targeted exposure to property and casualty insurance companies | $413.38 million | 0.35% |
Fidelity MSCI Financials Index ETF (NYSEMKT:FNCL) | Tracks the MSCI USA IMI Financials Index, covering a wide range of financial companies, including insurers | $2.36 billion | 0.08% |
Global X FinTech ETF (NASDAQ:FINX) | Invests in financial technology companies affecting the insurance industry | $265.99 million | 0.68% |
SPDR S&P 500 Financials ETF (NYSEMKT:XLF) | Tracks the financial sector of the S&P 500, including major insurance companies | $51.87 billion | 0.08% |
iShares Global Financials ETF (NYSEMKT:IXG) | Provides exposure to global financial companies, including insurers across various regions | $625.51 million | 0.41% |
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The bottom line on Nationwide
Although you can't directly invest in Nationwide since it's not publicly traded, there are several ways to gain indirect exposure to its performance. By investing in related companies and ETFs, you can benefit from Nationwide's success and the broader insurance sector's stability.
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