ETF Research Center

The Reality Shares Nasdaq NexGen Economy ETF seeks long-term growth by tracking the investment returns, before fees and expenses, of the Reality Shares NASDAQ Blockchain Index.

FUND BASICS
Category	Global Equities
Fund Sponsor	Reality Shares
Website	www.realityshares.com
Inception date	Jan 17, 2017
Assets (mns)	$62
Currency	USD
Expense ratio	68 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	68
Wgt avg mkt cap (mns)	$179,709
Large cap (>$10bn)	88.1%
Mid cap ($2-10bn)	8.1%
Small cap (<$2bn)	3.8%
Developed mkts	84.2%
Emerging mkts	15.8%

TOP TEN HOLDINGS
Total	21.5 %
ADVANCED MICRO DEVICES	2.5 %
ZHONGAN ONLINE P&C INSURANCE CO.,	2.5 %
NVIDIA CORP	2.4 %
SQUARE, INC. CLASS A	2.2 %
FUJITSU LTD	2.1 %
MICROSOFT CORP	2.0 %
JD.COM INC-ADR	2.0 %
INTEL CORP	2.0 %
LINE CORP. SPONSORED ADR	1.9 %
BAIDU INC - SPON ADR	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	45.8 %
	CHINA	15.5 %
	JAPAN	13.6 %
	GERMANY	5.7 %
	CANADA	2.6 %
	IRELAND	1.8 %
	SOUTH KOREA	1.7 %
	TAIWAN	1.7 %
	BRITAIN	1.6 %
	SWITZERLAND	1.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
0.3%	21.2%	--	--	3.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.15	94%
MSCI EAFE	1.21	79%
MSCI Emg. Mkts.	0.86	63%

Technical Indicators
Recent close	$24.85
30d moving avg.	$26.53
Annualized volatility	16.9%
Short interest (ETF)	0.3%
Relative strength (RSI)	41

Liquidity measures
Avg. volume (thou.)	12
Turnover	0.5%
Bid/Ask (% of price)	0.51%
ADV underlying (mns)	$52,833

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Reality Shares Nasdaq NextGen Economy ETF ETF based on the alternatives' overlap in portfolio holdings with BLCN. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

BLCN

Expense:

68 bp

ALTAR Score™:

5.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH BLCN
Ticker	Fund Name	Overlap¹ vs BLCN (%)	Expense ratio (bp)	Savings vs BLCN (bp)	ALTAR Score™ (%)	ALTAR vs BLCN (%)
BLOK	Amplify Transformational Data Sharing ETF	46.6	70	-2	4.3	-0.9
LEGR	First Trust Index Digital Transaction & Process Technology E	42.8	65	3	6.7	+1.6
KOIN	Innovation Shares NextGen Protocol ETF	31.0	95	-27	4.6	-0.5
GDAT	Goldman Sachs Motif Data-Driven World Etf	29.1	50	18	6.3	+1.2
XNTK	SPDR Morgan Stanley Technology ETF	28.1	35	33	4.6	-0.5
AIQ	Global X Future Analytics Tech ETF	28.0	68	0	4.8	-0.3
IETC	iShares Evolved U.S. Technology ETF	24.3	18	50	4.7	-0.4
IGM	iShares North American Tech ETF	24.3	46	22	4.6	-0.5
USMC	Principal U.S. Mega-Cap Multi-Factor Index ETF	24.2	12	56	5.6	+0.5
PLAT	WisdomTree Modern Tech Platforms Fund	23.5	45	23	2.1	-3.1
OEF	iShares S&P 100 ETF	22.9	20	48	5.6	+0.5
RYT	Invesco S&P 500 Equal Weight Technology ETF	22.5	40	28	6.8	+1.7
TECB	iShares US Tech Breakthrough Multisector ETF	22.3	40	28	4.8	-0.4
XLG	Invesco S&P 500 Top 50 ETF	22.1	20	48	5.3	+0.2
XLK	Technology Select Sector SPDR Fund	21.4	13	55	5.6	+0.4
OMOM	Invesco Russell 1000 Momentum Factor ETF	21.3	19	49	4.9	-0.3
VGT	Vanguard Information Technology Index Fund	21.3	10	58	5.4	+0.3
IXN	iShares Global Tech ETF	21.2	46	22	5.4	+0.3
SPXV	ProShares S&P 500 Ex-Health Care ETF	21.2	27	41	5.8	+0.6
IWL	iShares Russell Top 200 ETF	21.2	15	53	5.8	+0.7

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Reality Shares Nasdaq NextGen Economy ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.7	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	68	bp
Equals: ALTAR Score	5.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.52	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.