The Reality Shares DIVS ETF (NYSE Arca:DIVY), the flagship fund from exchange-traded fund issuer and research firm Reality Shares, enters its third year of offering a viable bond alternative for investors unsatisfied with traditional fixed income instruments, yet weary of the volatility commensurate with equities.
DIVY is a first-of-its-kind ETF that seeks to deliver long-term capital appreciation based on the growth of dividends – not stock price – of large-cap companies. An institutional-grade strategy designed to outperform bonds and alternative indices, DIVY has historically boasted low volatility, low correlation attributes that have been embraced by risk-averse investors frustrated by the currently stale fixed income market.
“Investors are acutely aware that the bull market has been on a seven-year run and rates are poised to go higher in the near future. For the investor concerned about lower volatility and market correlation, DIVY provides a potential solution in a liquid, cost-effective ETF wrapper,” said Eric Ervin, CEO of Reality Shares. "As a former advisor, I saw the market needed a product that allowed investors to access the dividend growth rate of the S&P 500, and DIVY seeks to do just that.”
As of Dec. 16, 2016, the fund is up 7.94 percent YTD and 11.77 percent since inception (December 18, 2014), with an annualized standard deviation of 6.30 percent since inception.
|Month End Performance||(as of November 30, 2016)|
|For the Period||1M||3M||YTD||1Y||Incept. (Cum.)||Incept. (Ann.)||Ann. Std. Dev.|
|DIVY Market Price||2.00%||1.49%||5.02%||4.63%||8.59%||4.30%||8.43%|
|Quarter End Performance||(as of September 30, 2016)|
|For the Period||Q3 2016||1Y||Incept. (Cum.)|
|DIVY Market Price||2.67%||4.62%||7.35%|
The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted.
About Reality Shares
At Reality Shares, we are focused solely on dividend growth investing and offer a range of alternative ETFs that pinpoint and capitalize on investment in dividend growth and the stocks that are most likely to increase their dividends, as well as avoiding those that are more likely to cut their dividends. Our rules-based, forward-looking methodology sets us apart in the market and allows investors to access and harness the power of dividend growth investing. Our proprietary DIVCON scoring system systematically ranks companies’ future dividend growth prospects based on a weighted average of seven quality factors that are correlated to dividend growth.
For more information, visit www.realityshares.com.
S&P 500: A broad-based, unmanaged American stock market index based on the market capitalizations of 500 large-cap companies having common stock listed on the NYSE or NASDAQ. Ann. Std. Dev.: Annualized standard deviation of the Fund’s daily return since inception.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 1-855-595-0240 or click here to view or download a prospectus online. Read the prospectus carefully before you invest.
The Fund may use a variety of investment strategies to achieve its investment objective, but generally invests in a portfolio of dividend swap contracts on the S&P 500 index. The contracts reflect current market expectations for future dividend payments on the index, and the value of the Fund’s portfolio is designed to change based primarily on changes in the expected dividend values reflected in the prices of the swap contracts. The Fund does not capture actual dividend payments, does not produce dividend income, is not appropriate for investors seeking dividend income, and Fund returns may go down even when actual dividend payments rise.
There are risks involved with investing including the possible loss of principal. Investments in swaps, options, and futures and forward contracts are subject to a number of risks, including correlation risk, market risk, leverage risk and liquidity risk, which may negatively impact the Fund’s investment strategy and could cause the Fund to lose money. Please review the prospectus for other important risks regarding the Fund, as each of these factors could cause the value of an investment in the Fund to decline over short- or long-term periods.
Reality Shares Advisors, LLC is the Investment Advisor. ALPS Distributors, Inc. is the Distributor for the Fund. Reality Shares Advisors, LLC and ALPS Distributors, Inc. are not affiliated.
Shares of the Fund are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market Price is based on the midpoint of the bid/ask spread at the close of the market and does not represent the returns an investor would receive if shares were traded at other times.
This material is prepared by Reality Shares, Inc. (“Reality Shares®”), and all material or information shared herein is for informational or educational purposes only. Nothing in this material shall constitute an offer or solicitation to purchase or sell any securities or funds. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance is not indicative of future performance and is no guide to future returns. This material contains general information only and is not intended to represent general or specific investment advice. This material may contain forward-looking statements which involve certain risks and uncertainties. The information contained in this material is derived from proprietary and nonproprietary sources deemed to be reliable, but may not necessarily be all-inclusive and are not guaranteed as to accuracy. No part of this material may be reproduced without the prior written consent of Reality Shares. Reality Shares® is a registered trademark of Reality Shares, Inc.
Eric Ervin is a Registered Representative of ALPS Distributors, Inc.
Lauren Davis, 610-228-2103