Such strategies are not uncommon on professional trading desks. For example, professional traders use dividend swaps, which trade on over-the-counter derivatives markets, which consist of multiple fixed payments from one party to a counterparty.
As highlighted by the recent inflows to DIVY, investors are taking note of the ETF’s strategy and ability to mitigate volatility.
“Another big driver is simply increased visibility. Investors have responded very favorably when they hear about DIVY, so we have been doing everything we can to get in front of them,” said Reality Shares CFO Tom Trivella in an email exchange with ETF Trends. “Those flows have increased our daily volume almost 10-fold and pulled some investors off the sidelines and created a virtuous circle for us. We think we can sustain those gains as more investors learn about DIVY and its truly unique advantage.”
Reality Shares DIVS ETF
