The DIVY ETF surpasses $50 million in assets

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.

Why dividend growth

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.

  • Lower corporate taxes will likely increase company cash reserves held in the United States, and can be a significant boon to dividend growth investors should they be paid out as dividends and buybacks
  • Lower repatriation taxes could bring back significant overseas cash, potentially increasing S&P 500 dividends nearly 9%1
  • Many analysts are now forecasting expanding corporate profits, further increasing the potential for rising dividend payouts

Attractive performance characteristics

divystats-march2017

 

Since DIYV’s inception, the S&P 500 has moved 1% or more 122 times (more than 1 out of every 4 days). In comparison, DIVY moved 1% or more only 15 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.

 

divymarch2017

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.

Interested in investing in the Reality Shares DIVS ETF? Learn how to invest here, or click the button below to invest using your own brokerage account, such as E*Trade. DIVY has no minimums!

Learn how to access the power of dividend growth with our brochure on DIVY.

Institutions and advisors, click here for the institutional DIVY white paper

 

 


About Reality Shares

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.


DIVY does not generate dividend income, and is not appropriate for investors seeking dividend income.

DIVY seeks to produce long-term capital appreciation. Unlike more traditional products, the Fund does not seek returns based on appreciation in the stock market price of equity securities. This means that the returns on your Fund investment are not intended to correlate to the returns of the overall stock market (for example, the value of your Fund investment may go down when overall equity markets go up, or vice versa). LEAD seeks long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Leaders Dividend Index (the “Benchmark Index”). DFND seeks long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Dividend Defender Index (the “Benchmark Index”). GARD seeks long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Dividend Guard Index (the “Benchmark Index”).

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 clicking here. Please read the prospectus carefully before investing.

Investing involves risks, including possible loss of principal. Shares are not FDIC insured and may lose value. Past performance does not guarantee future results.

The DIVY Fund is actively managed and may fail to achieve its investment objective. There is no guarantee the Fund’s investment strategies will be successful. The Fund’s derivative investments in swaps, futures and forwards are subject to a number of risks, including correlation risk, market risk, counterparty credit risk and liquidity risk, which may negatively impact the Fund’s investment strategies and could cause the Fund to lose money. The Fund does not capture dividend payments or generate dividend income, and is not appropriate for investors seeking dividend income. The Fund uses a dividend isolation strategy whereby investment returns are based primarily on the change in expected dividend values reflected in the prices of the Fund’s portfolio holdings.

For LEAD, DFND and GARD, there is no guarantee or assurance the methodology used to create the respective Benchmark Index will result in the Fund achieving positive returns. The Fund may be more susceptible to a single adverse economic or other occurrence and may therefore be more volatile than a more diversified fund. Each Benchmark Index is constructed using a rules-based methodology based on quantitative models developed by Reality Shares. These quantitative models may be incomplete, flawed or based on inaccurate assumptions and, therefore, may lead to the selection of assets that produce inferior investment returns or provide exposure to greater risk of loss. The investment portfolio for DFND includes securities sold short. The investment portfolio for GARD may include securities sold short. Securities sold short create special risks which may result in increased volatility of returns and counter-party risk. Investments in short sales may also incur dividend and borrowing expenses and may result in the Fund being less tax-efficient. Please review the prospectus for important risks regarding the Funds.

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. 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.

Reality Shares Advisors, LLC is the Investment Advisor. ALPS Distributors, Inc. is the Distributor for the Fund. ALPS Distributors, Inc. is not affiliated with Reality Shares Advisors, LLC.


Portfolio of Holdings and Fund Performance for LEAD, DFND, GARD, and DIVY.