Shortly after celebrating its second anniversary, the Reality Shares DIVS Exchange Traded Fund (Ticker: DIVY) celebrated accumulating $50 million in assets! This is a 41% growth in assets year-to-date, as of February 28, 2017. Boosted by strong performance relative to its fixed income and alternative benchmarks, the ETF was recently named Alternative ETF of the Year by Fund Action.
The S&P 500 has grown its dividends in 41 of the last 44 years since 1973.* Investors looking to potentially take advantage of this growth and diversification option should consider a non-traditional asset class addition to the investment universe: isolated dividend growth. In addition, several market developments look poised to potentially benefit dividend growth investors.
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.
3 Inception date is December 18, 2014.
4 As of February 28, 2017.
5 Period from October 1, 2016 – December 31, 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.
Gross expenses of the Trust for the prior year were 0.91% of the net asset value of the Trust and accordingly, no expenses of the Trust were assumed by the Sponsor.
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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.
*Standard & Poor’s and Reality Shares Research
1 Source: Bloomberg, Reality Shares Research. As of Mar. 9, 2017.
2 Correlation and annualized volatility based on weekly returns since inception (Dec. 18, 2014 – Mar. 3, 2017). Source: Bloomberg, Compustat, S&P Capital IQ, Reality Shares Research. 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 4pm 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.
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.
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.
Diversification does not ensure a profit or guarantee against loss.
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. The Fund may invest in European and Japanese securities per the most recent prospectus. The portfolio manager is limiting the Fund to US securities as of the date of this fact sheet and could be subject to change without notification.
DIVY does not generate dividend income, and is not appropriate for investors seeking dividend income. The Fund uses a dividend isolation strategy in which the investment returns of the Fund are based primarily on the change in expected dividend values reflected in the prices of the Fund’s portfolio holdings. There can be no guarantees that this investment strategy will be successful or that this strategy will produce positive investment returns. The Fund utilizes derivatives which present specific risks which could cause the Fund to lose money and affect your return.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This information is in the prospectus, and may be obtained by visiting www.realityshares.com/funds or by calling 855-595-0240. Please read the prospectus carefully before you invest.
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.
ETF shares are not individually redeemable. Investors buy and sell shares of the Fund on a secondary market. Only market makers or ‘authorized participants’ may trade directly with the Fund, typically in blocks of 25,000 shares.
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 on this web site 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 the material provided on this web site are 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.