Institutions and advisors, click here for the institutional DIVY white paper.
The Reality Shares DIVS Exchange Traded Fund (Ticker: DIVY) celebrated its second anniversary on Dec. 18, 2016! DIVY is now in 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. By separating dividend growth from stock prices, DIVY aims to give investors access to the expected dividend growth of the large companies in the U.S. without exposure to the volatility of their underlying stock prices.
The S&P 500 has grown its dividends in 40 of the last 43 years since 1973.** Investors looking to take advantage of this growth and diversification option should consider a non-traditional asset class addition to the investment universe: isolated dividend growth. Also, a new political climate encourages DIVY for continued growth after potentially sweeping corporate tax policy changes and the repatriation of billions of dollars back to the balance sheets of U.S. dividend paying stocks.
Since DIYV’s inception, the S&P 500 has moved 1% or more 118 times (more than 1 out of every 4 days). In comparison, DIVY moved 1% or more only 14 times, showing resilience in the face of choppy markets.
The DIVY ETF gives investors the potential for very low volatility in markets that are becoming increasingly uncertain. This protection is even more important to investors today than during DIVY’s inception in 2014, as interest rates are expected by most to continue rising. DIVY also potentially provides diversification benefits to its investors due to its limited correlation with the stock and bond markets.
At Reality Shares, we focus solely on dividend growth investing and offer a range of ETFs pinpointing and capitalizing on investments in the stocks most likely to increase their dividends. Our proprietary DIVCON® model systematically ranks companies’ future dividend growth prospects based on seven quality factors that are correlated to dividend growth. DIVCON® was designed to also help avoid the stocks 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.
*Performance data quoted represents past performance as of December 18, 2016. Past performance is no guarantee of future results and investment return.
**Standard & Poor’s and Reality Shares Research
1 Data from Dec 17, 2014 – Sep 30, 2016. Source: Bloomberg, Reality Shares Research. Past performance does not guarantee future results.
2 Past performance does not guarantee future returns. The annualized returns are from Dec. 29, 2000 through Jun. 30, 2016. Price Growth: The rate of return of the market price over the specified time period. Dividend Growth: The growth of the indicated dividend of the S&P 500 Index. Total Return: The actual rate of return over the specified time period, including dividend reinvestment. Source: Bloomberg, Compustat, S&P Capital IQ, Reality Shares Research. Past performance does not guarantee future results.
3 Sep 30, 2015 to Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.
DIVY does not generate dividend income, and is not appropriate for investors seeking dividend income.
S&P 500 Index: A broad stock market index of 500 large companies based on market capitalization.
S&P 500 total Return Index: A broad stock market index of 500 large companies based on market capitalization.
Barclays U.S. Aggregate Bond Index: Represents investment grade bonds traded in the U.S.
HFRX Global Hedge Fund Index: Represents the overall composition of the hedge fund universe.
Indexes are unmanaged and one cannot invest directly in an index
© 2017 Reality Shares®
Carefully consider the investment objective, risks, charges and expenses before investing in Reality Shares ETFs. This and other important information can be found in the Fund's prospectus, which may be obtained by calling 855-595-0240 or by visiting us at realityshares.com. Please read the prospectus carefully before investing.