January 5, 2015

U.S. markets experienced a sharp sell-off on Monday as investor sentiment here and abroad continued to be weighed by free-falling energy prices and currency concerns. The Dow Jones Industrial Average fell more than 330 points during session lows, and West Texas Intermediate (WTI) Crude Oil bottomed out at $49.95 on the day, crossing the critical $50 threshold. The VIX index, which tracks U.S. market volatility, soared as much as 19.7%.

While fear, global events and other factors continue to contribute to stock price volatility, we believe dividend growth provides a level of stability for investors seeking solace from these tumultuous markets. As Howard Silverblatt of S&P Dow Jones Indices recently pointed out, 2014 cash dividends for the S&P 500 increased 12.7% over 2013, posting another new record. Additionally, Howard says “at the current declared rate, 2015 is already set to beat 2014 by 4.4%, and that is before any 2015 increases” (Source: S&P 500 December 2014: Time to Celebrate, 12/31/2014).


Reality Shares does not make any representations, endorsements or promotions to any company, security, or trading strategy as may be held or represented in Reality Shares Funds. For a complete list of all portfolio holdings held by Funds advised by Reality Shares, please click here.

Dow Jones Industrial Average: A price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. S&P 500: A broad stock market index based on the market capitalization of 500 large companies having common stock listed on the NYSE or NASDAQ. The S&P 500 was developed and continues to be maintained by Standard & Poor’s Financial Services LLC, and is considered to be a bellwether for the US economy.

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.

Investing involves risks, including possible loss of principal. Past performance does not guarantee future results. There is no assurance the stated objective(s) will be met. Not FDIC insured. See the section “Principal Risks” in the prospectus for important risk disclosures.

Investments in options, swaps, forward contracts and futures contracts are subject to a number of risks, including correlation risk, interest rate risk, market risk, leverage risk, and liquidity risk. Each of these risks could cause the Fund to vary from its stated objective, could cause the Fund to lose money and may have a negative impact on the value of your investment. Please refer to the Fund Risks for further explanation of individual risks.

This material contains the opinions of the author, which are subject to change, and should not to be considered or interpreted as a recommendation to participate in any particular trading strategy, or deemed to be an offer or sale of any investment product and it should not be relied on as such.

Dividends are not guaranteed, and a company’s future ability to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.

You cannot invest directly in an index.

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.

The Fund is newly organized and the Adviser has not previously managed an ETF registered under the 1940 Act.

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 4:15pm ET on business days and does not represent the returns an investor would receive if shares were traded at other times.