Invest in the Reality Shares Nasdaq NexGen Economy China ETF

Why blockchain?

Potential as a new framework for information

Blockchain technologies are quickly becoming one of the most exciting areas of interest for many investors and companies. Simply put, the blockchain technology is a shared and decentralized information ledger — a record of all activity, independently but simultaneously maintained by multiple separate third-parties. Every transaction is stored in a ‘block’ of information.

As the full public ledger of the entire network is always available and every asset is fully traceable, it is generally hypothesized to be the next generation of transaction security. The blockchain technology can present significant opportunities for many business types and can have a far-reaching impact in the modernization of global business transactions.

Why China?

Access to a market of unparalled recent growth

  • China’s economic growth has created immense wealth – BCNA seeks to capitalize on the potential of continued growth in the Chinese economy
  • China exhibits factors attractive to many investors including P/E ratio, historical non-correlation to the US market, the size of its equity market, and strong credit quality
  • In 2017, China led the world in the number of filed blockchain-related patents¹

Today Chinese companies represent some of the largest proponents of blockchain technology and have committed vast material resources to developing, researching, supporting, innovating, and utilizing blockchain technology. Blockchain-related investments in China can span the infrastructure, financial services, manufacturing, and technology industries, and offer the potential for outperformance as well improving the world.

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1 CoinTelegraph: “China Filed The Most Blockchain Patents In 2017”, Mar 25, 2018
Principal risks for BCNA include Authorized Participant Concentration Risk, Blockchain Technology Risk, Depositary Receipt Risk, Emerging Markets Risk, Equity Risk, ETF Trading Risk, Foreign Issuer Exposure Risk, Geographic Concentration Risk, Non-Blockchain Technology Business Line Risk, Index Performance Risk, Index Tracking Error Risk, Sector Risk, Industry Concentration Risk, Market Risk, and Non-Diversification Risk. See prospectus for full description of risks.

Blockchain technology is a new and developing technology protocol developed by companies in a manner for optimizing business practices. Blockchain technology is not a product or service with an individually attributable revenue stream. Blockchain technology may never develop optimized transactional processes that lead to increased economic returns to any company in which the fund invests. There can be no assurance that blockchain technology will affect the primary lines of business in the Fund’s portfolio companies to have a positive impact on a company’s financial condition. BCNA is new and has limited trading history.

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Why the Reality Shares Nasdaq NexGen Economy China ETF (BCNA)?

Seeks to invest in companies utilizing blockchain technology*

The potential benefits of investing with BCNA

An ETF composed of constituents in China

Access a Chinese innovation-based investment through a convenient exchange-traded fund

Stocks selected for potential for blockchain-related growth

Invest in the universe of stocks from around the world

The Reality Shares Nasdaq NexGen Economy China exchange-traded fund is designed to track the performance of companies in China that are committing material resources seeking to transform practical business applications through the development and use of blockchain technology. By developing the ETF, Reality Shares seeks to identify leading global companies that are defining the application for blockchain technology as the first native digital medium for value, similar to those early companies that defined the Internet as the first native digital medium for information.


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* These are ETFs and there is no guarantee that their investment goals and strategies will be successful. The Funds are not designed to deliver substantial dividend income, and may not be appropriate for investors seeking dividend income.

Meet the Blockchain Index advisory board

Our advisory board now includes six original blockchain and cryptocurrency executives. The board will serve as an industry “think tank,” bringing new ideas and guidance to expand our footprint in the emerging, exciting world of blockchain technology.

Distinguished members of the Reality Shares blockchain advisory board include:

Erik Voorhees

Shapeshift AG

Garrick Hileman

University of Cambridge

Jeff Garzik

Bloq

Marco Santori

Blockchain

Matthew Roszak

Tally Capital

Steve Beauregard

GoCoin

How it works

Ranking the companies through blockchain scores

The Blockchain Score methodology is a rules-based, quantitative process built to evaluate companies across the globe and industry sectors based on their potential. We created this methodology to pinpoint and evaluate the highest-scoring companies among the universe of blockchain-related companies worldwide.

Our methodology, based on a series of quantitative factors, produces a Blockchain Score for each company. These factors include the potential for increased economic profit, operational efficiencies, and transformational business practices—analyzed to uncover the companies with the most potential within the blockchain economy, as determined by our research.

Take a closer look at our Blockchain Score methodology

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How to invest

Two easy ways to access BCNA

There are many easy ways to purchase Reality Shares’ exchange traded funds — investments that trade like stocks and are already widely available through many investment platforms.

#1. Talk to your advisor

Talk to your advisor about adding Reality Shares ETFs to your investment account

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#2. Invest online

Get started and click below to use our secure online trading platform that works seamlessly with many existing online brokerage accounts

* These are ETFs and there is no guarantee that their investment goals or strategies will be successful. LEAD, DFND, GARD, and DIVY are not designed to deliver substantial dividend income, and may not be appropriate for investors seeking dividend income.

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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. Historical data relative to companies that have or have not paid dividends is no indication of how the Fund will perform, since investors are not directly investing in these companies.

For LEAD, DFND, GARD, BLCN, and BCNA, there is no guarantee or assurance the methodology used to create the respective Benchmark Indexes will result in the Funds achieving positive returns. The Funds 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 Funds being less tax-efficient.

Principal risks for BLCN and BCNA include Authorized Participant Concentration Risk, Blockchain Technology Risk, Depositary Receipt Risk, Emerging Markets Risk, Equity Risk, ETF Trading Risk, Foreign Issuer Exposure Risk, Geographic Concentration Risk, Non-Blockchain Technology Business Line Risk, Index Performance Risk, Index Tracking Error Risk, Sector Risk, Industry Concentration Risk, Market Risk, and Non-Diversification Risk. See prospectus for full description of risks. BLCN and BCNA are new and has limited trading history.

Blockchain technology is a new and developing technology protocol developed by companies in a manner for optimizing business practices. Blockchain technology is not a product or service with an individually attributable revenue stream. Blockchain technology may never develop optimized transactional processes that lead to increased economic returns to any company in which the Fund invests. There can be no assurance that blockchain technology will affect the primary lines of business in Fund portfolio companies to have a positive impact on a company’s financial condition.

The principal value of debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. The Fund may also invest in foreign securities, which involve political, economic, and currency risks, greater volatility, and differences in accounting methods. Index reconstitution may result in high portfolio turnover which may result in higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account.

The Benchmark Indices were created and are maintained through a collaboration between Reality Shares and Nasdaq, and the Funds are listed on the Nasdaq exchange.

ETF shares are not individually redeemable. Investors buy and sell shares of the Funds 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 Funds. ALPS Distributors, Inc. is not affiliated with Reality Shares Advisors, LLC.


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