Reality Shares Announces The Closure of Exchange Traded Fund “Reality Shares DIVS ETF” (NYSE: DIVY)
08 Setembro 2020 - 7:46PM
Business Wire
After careful consideration, and at the recommendation of
Reality Shares Advisors, LLC, the investment adviser to the Reality
Shares DIVS ETF (the “Fund”), the Board of Trustees (the “Board”)
of Reality Shares ETF Trust (the “Trust”) approved the closing and
subsequent liquidation of the Fund pursuant to the terms of a Plan
of Liquidation (the “Liquidation”). Accordingly, the Fund is
expected to cease operations, liquidate its assets, and distribute
the liquidation proceeds to shareholders of record on or about
September 25, 2020 (the “Liquidation Date”).
The last day of trading of Fund shares on the NYSE Arca, Inc.
(the “Exchange”) is expected to be September 21, 2020. The Exchange
will halt trading in the Fund’s shares before the open of trading
on September 22, 2020. On or about September 15, 2020, the Fund
will be closed to new investments and shareholders may only be able
to sell their shares to certain broker-dealers. There is no
assurance that there will continue to be a market for the Fund’s
shares during this time period. Prior to the close of trading on
September 21, 2020, shareholders may continue to purchase and sell
Fund shares through a broker in the standard manner. Customary
brokerage charges may apply to such transactions.
Beginning on September 8, 2020 and continuing through the
Liquidation Date, the Fund will liquidate its portfolio assets. As
a result, during this period, the Fund will increase its cash
holdings and deviate from its investment objective, investment
strategies, and investment policies as stated in the Fund’s
Prospectuses and SAI.
If no action is taken by a Fund shareholder prior to the
Liquidation Date, the Fund will distribute to such shareholder, on
or promptly after the Liquidation Date, a liquidating cash
distribution equal to the net asset value of the shareholder’s Fund
shares as of the close of business on the Liquidation Date. This
amount will include any accrued capital gains and dividends.
Shareholders remaining in the Fund on the Liquidation Date will not
be charged any transaction fees by the Fund. However, the net asset
value of the Fund on the Liquidation Date will reflect the costs of
closing the Fund. The liquidating cash distribution to shareholders
will be treated as payment in exchange for their shares. The
liquidation of your shares may be treated as a taxable event.
Shareholders should contact their tax adviser to discuss the income
tax consequences of the liquidation.
About Reality Shares
At Reality Shares, we strive to deliver ETFs based on innovative
investment methodologies. Ranging from disruptive fintech to a
proprietary dividend health rating system called DIVCON™, Reality
Shares is focused on offering investors access to innovative market
segments.
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.
Investing involves risks, including the risk of loss of
principal. For DIVY, the Fund may be more susceptible to a single
adverse economic or other occurrence and may therefore be more
volatile than a more diversified fund. Fund risks include
Authorized Participant Concentration Risk, Blockchain
Technology Risk, Depositary Receipt Risk, Emerging Markets
Risk, Equity Risk, Non-Blockchain Technology Business Line Risk,
Index Performance Risk, Index Tracking Error Risk, Sector Risk,
Industry Concentration Risk, Market Risk, and Non-Diversification
Risk. See prospectus for full description of risks, which may
negatively impact the Fund’s investment strategy and could cause
the Fund to lose money, cause the value of an investment in the
Fund to decline over short- and long-term periods. The
principal value of debt securities typically decrease when
interest rates rise. This risk is usually greater for longer-term
debt securities.
For DIVY, Market risk may affect a single issuer, sector
of the economy, industry or the market as a whole. The fund is
subject to large-cap risk and may underperform other
segments of the equity market or the equity market as a whole. The
prices of equity securities in which the fund invests rise
and fall daily. The fund's net value will generally decline
when the market value of its targeted index declines. Although the
Fund’s shares are listed on an exchange, there can be no assurance
that an active, liquid or otherwise orderly trading market
for shares will be established or maintained. The Fund may have
portfolio turnover, which may cause an adverse cost impact.
There may be additional portfolio turnover risk as active
market trading of the fund’s shares may cause more frequent
creation or redemption activities that could, in certain
circumstances, increase the number of portfolio transactions as
well as tracking error to the Index and as high levels of
transactions increase brokerage and other transaction costs and may
result in increased taxable capital gains. The fund’s use of
leverage allows for investment exposure in excess of net
assets, thereby magnifying volatility of returns and risk of loss.
Swaps, futures, forwards and options investments may be
affected by the overall market and industry- and specific factors,
and may be more volatile and less liquid than other investments.
Investing in derivatives is a specialized activity that
involves special risks that subject the fund to significant loss
potential, including when used as leverage, and may result in
greater fluctuation in fund value. The Fund will invest at least
80% of its assets, other than collateral held from securities
lending, if any, in component securities of the Index. The Fund may
also invest up to 20% of its assets in swaps, futures, forwards,
options, exchange-traded funds As a non-diversified fund,
fewer investments could have a greater effect on performance. The
fund is passively managed and seeks to track the performance
of an index. The fund may not sell a poorly performing security
unless it was removed from the index. There is no guarantee that
the index will achieve positive returns. Risk exists that the index
provider may not follow its methodology for index construction.
Errors may result in a negative fund performance. This fund is
newly organized and has limited operating history. Shares are not
FDIC insured.
ETF shares are bought and sold at market price (not NAV) and
are not individually redeemable. Investors buy and sell shares on a
secondary market. Shares may trade at a premium or discount to the
NAV. Only market makers or "authorized participants" may trade
directly with the Fund(s), typically in blocks of 25,000 shares.
Shares are not FDIC insured and may lose value.
Reality Shares Advisors, LLC is the Investment Advisor. ALPS
Distributors, Inc. is the Distributor for the Fund and is not
affiliated with Reality Shares Advisors, LLC
RLT001158 Ex. 9/7/2021
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200908006047/en/
Eric Ervin, Reality Shares 619.487.1445
eervin@realityshares.com
Sound Equity Dividend In... (AMEX:DIVY)
Gráfico Histórico do Ativo
De Fev 2025 até Mar 2025
Sound Equity Dividend In... (AMEX:DIVY)
Gráfico Histórico do Ativo
De Mar 2024 até Mar 2025