ETF Research Center

The Reality Shares DIVCON Leaders Dividend ETF tracks an index of dividend-paying US large-cap stocks that are deemed likely to increase their dividends in the next 12 months.

FUND BASICS
Category	US Equities
Fund Sponsor	Reality Shares
Website	www.realityshares.com
Inception date	Jan 06, 2016
Assets (mns)	$32
Currency	USD
Expense ratio	43 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	62
Wgt avg mkt cap (mns)	$91,572
Large cap (>$10bn)	91.9%
Mid cap ($2-10bn)	8.1%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	21.6 %
LAM RESEARCH CORP	2.8 %
MSCI INC-A	2.3 %
CINTAS CORP	2.2 %
APPLE INC	2.1 %
S&P GLOBAL, INC.	2.1 %
CDW CORP/DE	2.1 %
ROSS STORES INC	2.1 %
NVIDIA CORP	2.0 %
BROADCOM INC.	2.0 %
MASTERCARD INC-CLASS A	2.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
24.1%	14.8%	--	--	12.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.02	93%
MSCI EAFE	0.92	63%
MSCI Emg. Mkts.	0.65	51%

Technical Indicators
Recent close	$37.40
30d moving avg.	$36.08
Annualized volatility	12.9%
Short interest (ETF)	0.0%
Relative strength (RSI)	74

Liquidity measures
Avg. volume (thou.)	8
Turnover	0.9%
Bid/Ask (% of price)	0.18%
ADV underlying (mns)	$26,853

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

LEAD

Expense:

43 bp

ALTAR Score™:

5.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH LEAD
Ticker	Fund Name	Overlap¹ vs LEAD (%)	Expense ratio (bp)	Savings vs LEAD (bp)	ALTAR Score™ (%)	ALTAR vs LEAD (%)
GARD	Reality Shares DIVCON Dividend Guard	95.5	129	-86	4.9	-0.8
DFND	Reality Shares DIVCON Dividend Defender	77.8	121	-78	5.0	-0.7
PSET	Principal Price Setters	27.5	29	14	5.5	-0.2
VSDA	VictoryShares Dividend Accelerator	26.6	35	8	4.8	-0.9
QUAL	iShares MSCI USA Quality Factor	26.1	15	28	6.1	+0.4
QARP	Xtrackers Russell 1000 US QARP	24.6	19	24	6.5	+0.8
PXLG	Invesco Fundamental Pure Large Growth	24.6	35	8	8.2	+2.5
FTCS	First Trust Capital Strength	24.5	60	-17	5.3	-0.4
DGRW	WisdomTree US Dividend Growth	22.8	28	15	6.7	+1.0
JQUA	JPMorgan U.S. Quality Factor	22.5	12	31	5.8	+0.1
AMOM	Qraft AI-Enhanced U.S. Large Cap Momentum	22.0	75	-32	3.6	-2.1
PY	Principal Shareholder Yield	21.8	29	14	8.0	+2.3
QDF	FlexShares Quality Dividend	21.6	37	6	7.0	+1.3
FQAL	Fidelity Quality Factor	21.4	29	14	5.8	+0.1
OQAL	Invesco Russell 1000 Quality Factor ETF	21.2	19	24	5.3	-0.4
IWY	iShares Russell Top 200 Growth	21.0	20	23	5.1	-0.6
PLC	Principal U.S. Large-Cap Multi-Factor Core Index	20.9	15	28	5.5	-0.2
MGK	Vanguard Mega Cap 300 Growth	20.7	7	36	5.0	-0.7
TTAC	TrimTabs All Cap US Free-Cash-Flow	20.4	59	-16	4.9	-0.8
DGRO	iShares Core Dividend Growth	20.3	8	35	6.4	+0.8

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

	2014	2015	2016	2017	2018	2019E	2020E
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

	2018	2019E	2020E
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 DIVCON Leaders Dividend
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	23.7	%
Divided by: Fwd. P/BV	3.9	x
Less: Expense ratio	43	bp
Equals: ALTAR Score	5.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.65	CATEGORY AVERAGE	1.55

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.