Unlike currently available dividend focused products, DIVY does not seek to produce returns based on changes in the stock market price of a portfolio of dividend-paying securities and does not generate dividend income. The ETF’s holdings are usually comprised of call and put options on major indexes such as the S&P 500 and the Nasdaq-100.
While DIVY is not a traditional dividend ETF, its strategy does help investors access the positive effects of a stock’s dividend growth rather than focusing on simple share price movements to produce solid long-term results.
Financial advisors who are interested in learning more about the dividend strategy can register for the Tuesday, November 8 webcast here.
Reality Shares DIVS ETF