“As of Dec. 17, 2017, the fund is up 5.29 percent year-to-date and 5.62 percent on an annualized basis since inception (Dec. 18, 2014), with an annualized standard deviation of 3.90 percent since inception,” according to Reality Shares.

Companies that have consistently increased dividends tend to be high in quality and show a strong potential for growth. These dividend growers have been able to withstand periods of market duress, exhibiting smaller drawdowns as investors sold off riskier assets, while still delivering strong returns on the upside, to generate improved risk-adjusted returns over the long haul.

“We created DIVY to provide an absolute return strategy that offers advisors and retail investors lower volatility,” said Eric Ervin, CEO of Reality Shares. “Investors wary of the volatility associated with equities but looking to complement their fixed income strategies have embraced the innovative methodology DIVY seeks to track.”

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