The Reality Shares DIVS Index is the first index designed to capture Isolated Dividend Growth, the growth of expected dividends without exposure to the volatility of the underlying stock prices. Reality Shares believes that the level of a company’s dividend provides a more accurate measure of its potential long-term value than its stock price, which can be impacted by market noise and sometimes-irrational human behavior.
Isolated Dividend Growth has historically had a lower correlation to equity market prices and delivered lower volatility compared to equity market price returns. The DIVS Index invests in S&P 500 dividend swaps and is constructed to eliminate the effect of stock market price changes and interest rate changes. As a result, the value of the swap portfolio is primarily based on changes in the expected dividend values reflected in those swap prices.
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The following interactive chart compares the Reality Shares DIVS Index to various benchmark indexes. Click on a series name in the legend to add/remove it from the chart. The data is updated quarterly.
January 1, 2001, through June 30, 2018. Returns from January 1, 2009, through April 30, 2016, are back-tested.
Index performance returns are for illustrative purposes only and do not represent an actual fund or portfolio performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. The information herein is not intended to predict actual results, which may differ substantially from those reflected. Investing involves risks, including possible loss of principal. Performance data quoted here represents past performance. Past performance is not necessarily indicative of future results. This material contains certain performance data based on back-testing, (i.e.) simulations of performance of a strategy as if it had actually existed during a defined period of time. The results of such data presented here are for illustrative purposes only, and constitute the judgment of RSA. While the information has been prepared in good faith, there are inherent limitations that recipients must consider carefully. Different models or different assumptions may yield different results.
Source: Bloomberg, Compustat, Reality Shares