Reality Shares Launches DIVCON Leaders Dividend Growth ETF
Features Focused Stock Selection & Weightings Based on Dividend Health and Growth Potential
Features Focused Stock Selection & Weightings Based on Dividend Health and Growth Potential
SAN DIEGO, Jan. 6, 2016 /PRNewswire/ -- Reality Shares, Inc., a provider of differentiated strategies for exchange-traded fund (ETF) investors, today launched the first ETF based on its innovative DIVCON™ Methodology, the Reality Shares DIVCON Leaders Dividend ETF (BATS: LEAD). The Fund is the first in a series of dividend growth ETFs that seek to invest in the large-cap U.S. companies with the highest probability of increasing their dividends within a year, based on their DIVCON dividend health scores. LEAD is listed on the BATS Exchange.
The Reality Shares DIVCON Leaders Dividend ETF features rules-based stock selection and weighting using its proprietary dividend health rating methodology, DIVCON, which systematically ranks companies' future dividend growth prospects based on a weighted average of seven quality factors correlated to dividend growth. Unlike many dividend funds based on decades-old dividend history or yield, LEAD invests in companies with the highest DIVCON scores, a select group of large-cap companies with the strongest potential to increase their dividends within a year. Reality Shares plans to launch additional ETFs in the DIVCON series in the coming weeks which seek to offer additional risk-mitigation features.
"We believe that dividends are a strong indication of companies' economic health, but all dividend-paying companies are not created equal," said Eric Ervin, CEO of Reality Shares. "Companies that increase their dividends have historically outperformed those with flat or declining dividends, or no dividend at all.* Our DIVCON ETFs are designed to provide differentiated returns by investing only in the select group of companies whose fundamental corporate strength have earned them the highest DIVCON dividend health scores and our highest expectations for dividend growth."
The Fund seeks to provide long-term capital appreciation by tracking the performance, before fees and expenses, of its benchmark index, the Reality Shares DIVCON Leaders Dividend Index (RSLEAD). The expense ratio for LEAD is 0.43%.
For more information and a copy of the Fund's prospectus, please visit: http://www.realityshares.com/funds or call (855) 595-0240.
* Source: Compustat & Reality Shares Research, analysis of S&P 500 companies from April 30, 1999 to Oct. 31, 2015.
About Reality Shares
Reality Shares is an innovative asset management firm, ETF issuer and index provider that offers institutional strategies for ETF investors. Honored as "New ETF Issuer of the Year" by ETF.com, the firm's research-driven investment products and solutions are designed to minimize the effects of market noise and emotion on investment performance. Reality Shares' goal is to democratize the world's best investing ideas, using systematic quantitative methods to deliver products and solutions that support a wide range of investing objectives, such as diversification, lower correlation, risk mitigation, or unique market exposures.
For more information visit www.realityshares.com or follow us on Twitter @RealityShares.
Media Contacts:
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This material is prepared by Reality Shares, Inc. ("Reality Shares") and is presented for information purposes only. This material does not constitute investment advice and should not be considered a solicitation to buy or an offer to sell securities. It does not take into account any investor's particular investment objectives, strategies, tax status or investment time horizon.
As with all investments, the value of your investment in the Fund can be expected to go up or down. You can lose money on your investment, including the possible loss of the entire principal amount of your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risk factors affecting your investments in the Fund are set forth below. Each of these factors could cause the value of an investment in the Fund to decline over short- or long-term periods. Additional principal risks include Equity Risk, ETF Trading Risk, Index Performance Risk, Index Tracking Error Risk, Market Risk, Investments in Other ETFs Risk and Non-Diversification Risk, which are more fully defined in the Fund's prospectus.
The ETF shares are bought and sold at market price, may trade at prices above or below the net asset value of the fund, and are not individually redeemed from the fund. Brokerage commissions and expenses will reduce investment returns.
The Reality Shares DIVCON ETFs are new with limited operating history. There is no guarantee the Funds will achieve its investment objective, and may not be suitable for all investors. The Advisor has not previously managed an ETF registered under the 1940 Act.
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.
Eric Ervin is a Registered Representative of ALPS Distributors, Inc. 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.
Copyright© 2016 Reality Shares, Inc. All rights reserved.
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SOURCE Reality Shares, Inc.
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