Income generation is still a major investment theme, especially among retirees who are only looking for a little extra cash. Reality Shares, a new player in the exchange traded fund space, has filed to launch three ETFs to generate income.
According to a Securities and Exchange Commission filing, Reality Shares is working on three ETFs.
Reality Shares Isolated U.S. Dividend Growth Index ETF. The underlying index tracks a combination of long U.S. large-cap equities and ETFs, along with long and short positions in options based on U.S. large-cap equities and indices. The fund will hold at last 80% of total assets in component securities while investing up to 20% of total assets in derivative instruments to minimize the impact of price fluctuations.
Reality Shares Isolated Global Dividend Growth Index ETF. This ETF employs a similar strategy, except it selects a group of large-cap securities from the U.S., Europe and Japan.
Reality Shares Isolated Dividend Growth ETF. This fund is actively managed and uses Reality Share Advisors’ trading strategies to isolate and capture dividend growth of large-cap equities from the U.S., Europe and Japan.
Each of the three funds takes a type of long/short strategy to negate price appreciation or depreciation.