As of May 1, 2018, investors utilizing the E*TRADE platform can access the following Reality Shares ETFs with zero-commission trading:
- The Reality Shares DIVS ETF (NYSE Arca: DIVY)
- The Reality Shares DIVCON Leaders Dividend ETF (BATS: LEAD)
- The Reality Shares Nasdaq NexGen Economy ETF (Nasdaq: BLCN)
“From day one, our mission at Reality Shares has been to provide a range of rules-based ETFs and quantitative tools to help investors of all sizes analyze and access innovative investment strategies,” said Eric Ervin, CEO of Reality Shares. “This relationship with E*TRADE allows us to further democratize the investing process by providing another low-cost option to help investors capitalize on our proprietary strategies.”
Reality Shares launched DIVY, its inaugural ETF, in December 2014. It is one of the first ETFs that seeks to deliver long-term capital appreciation based on the growth of dividends, not stock price, of large-cap companies. The fund, which is classified as a Multialternative by Morningstar, earned a 5-star Morningstar rating1 in January 2018 for its ambitious strategy and performance.
LEAD invests in large-cap companies with the highest probability of increasing their dividends in the next 12 months, as determined by DIVCON®, Reality Shares’ proprietary dividend health rating methodology.
Earlier this year, Reality Shares made its debut into the blockchain technology space by launching BLCN, which invests in companies committing material resources to developing, researching, innovating or utilizing blockchain technology. The fund garnered more than $100 million in assets within 10 trading days and continues to attract investor interest.
“For investors seeking strategies beyond the mainstream, ETFs that utilize alternative investment methodologies can be an appealing play,” said Rich Messina, SVP, Investment Product Management at E*TRADE. “With the addition of three Reality Shares ETFs, we continue in our pursuit to arm the retail investor with ETFs that can be used for a variety of investment objectives, without the cost of placing a trade.”
For more information on Reality Shares’ ETF suite, visit www.realityshares.com.
1For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ metric each month by subtracting the return on a 90-day U.S. Treasury Bill from the fund’s load-adjusted return for the same period, and then adjusting this excess return for risk. The top 10 percent of the funds in each broad asset class receive 5 stars, the next 22.5 percent receive 4 stars, the next 35 percent receive 3 stars, the next 22.5 percent receive 2 stars and the bottom 10 percent receive 1 star. The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating™ metrics. DIVY was rated against the following number of U.S.-domiciled funds over the following time period: 8 funds in the last three years. With respect to these funds, DIVY received a Morningstar Rating™ of 5 stars for the three year-period. Past performance is no guarantee of future results.
About Reality Shares
Reality Shares is an innovative asset management firm, ETF issuer and index provider. 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.
About E*TRADE’s Commission-Free ETF Platform:
You can buy and sell the exchange-traded funds (ETFs) available through the E*TRADE Securities (Member FINRA/SIPC) commission-free ETF program without paying brokerage commissions. For margin customers, ETFs purchased through the program are not margin eligible for 30 days from the purchase date. To discourage short-term trading, E*TRADE Securities may charge a short-term trading fee on sales of participating ETFs held for less than 30 days.
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.
DIVY is actively managed and 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. Dividends are not guaranteed and a company’s future abilities to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.
LEAD seeks long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Leaders Dividend Index. Principal risks for the Fund include Equity Risk, ETF Trading Risk, Index Performance Risk, Index Tracking Error Risk, Market Risk, Investments in Other ETFs Risk, and Non-Diversification Risk. Please refer to the prospectus for further explanation of individual risks.
BLCN is passively managed and there can be no assurance the Fund’s investment objective will be achieved. BLCN seeks long-term growth by tracking the performance, before fees and expenses, of the Reality Shares Nasdaq Blockchain Economy Index. The Fund may invest in securities issued by companies concentrated in a particular industry or sector, which involves additional risks including limited diversification. The Fund may invest in small capitalization and mid-capitalization companies. Such companies may experience greater price volatility than larger, more established companies. If the Fund has lower average daily trading volumes, it may rely on a small number of third-party market makers to provide a market for the purchase and sale of shares. The Fund will also invest in foreign securities, which involve political, economic, and currency risks, greater volatility, and differences in accounting methods. These risks are greater for investments in emerging markets. Blockchain technology is an entirely new and relatively untested technology and may never be implemented to a scale that provides identifiable economic benefit to the companies included in the index. Blockchain systems could be vulnerable to fraud. There is little regulation of blockchain technology and because blockchain technology systems may operate across many national boundaries and regulatory jurisdictions, it is possible that it may be subject to widespread and inconsistent regulation. The values of the companies included in the index may not be a reflection of their connection to blockchain technology but may be based on other business operations. Currently, blockchain technology is primarily used for the recording of transactions in digital currency, which is extremely speculative, unregulated and volatile. Because digital assets registered in a blockchain do not have a standardized exchange, like a stock market, there is less liquidity for such assets and greater possibility of fraud or manipulation. The Fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the Fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.
ETF shares are bought and sold at market price, not NAV, and are not individually redeemable. Owners may acquire shares from the Fund and tender shares for redemption to the Fund in creation units only.
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, or E*TRADE.
Copyright © 2018 Reality Shares, Inc. All rights reserved.