Exchange-traded fund provider Reality Shares announced earlier this week it has closed the exchange-traded fund “Reality Shares DIVS ETF” (NYSE: DIVY). Reality Shares reported that it will halt trading in the Fund’s shares before the open of trading on September 22nd. The Fund is one of the four ETFs that Reality Shares currently offers.
“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.”
Reality Shares further revealed 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.”
Reality Shares added that the Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders of record on or about September 25th.
Founded in 2011, Reality Shares describes itself as an innovative asset management firm, ETF issuer, and index provider. The platform’s goal is to democratize the world’s best investing ideas, using systematic quantitative methods to deliver products and solutions that support a wide range of investing objectives, such as diversification, lower correlation, risk mitigation, or unique market exposures.