SAN DIEGO--(BUSINESS WIRE)--Reality Shares, an innovative asset management firm, exchange-traded fund (ETF) issuer and index provider, today launches the first ETF to give investors access to China-based companies potentially leading the blockchain technology revolution.
The Reality Shares Nasdaq NexGen Economy China ETF (Nasdaq: BCNA) tracks the Reality Shares Nasdaq Blockchain China Index, which seeks to identify and invest in Chinese companies committing material resources to develop and implement blockchain technology. The index rebalances semiannually and is comprised of 31 constituents.
“China is quickly becoming a global epicenter for blockchain innovation. In 2017, the nation filed for more blockchain-related patents than any other country in the world1, and the Chinese government recently endorsed blockchain technology as an economic ‘breakthrough,’” said Eric Ervin, CEO of Reality Shares. “China’s blockchain industry presents an incredibly exciting and long-term investment opportunity, and through BCNA, investors can now easily access this emergent market.”
BCNA’s index components are determined by Reality Shares’ proprietary Blockchain Score™ methodology, which evaluates companies based on seven key factors, including: role in blockchain ecosystem, blockchain product stage, blockchain economic impact, Blockchain Institute membership, research and development expenditure, company filings and innovation. In addition, the fund’s advisory board is stacked with six well-regarded blockchain and cryptocurrency executives who are involved in the research process.
Reality Shares entered the blockchain technology space earlier this year with the launch of the Reality Shares Nasdaq NexGen Economy ETF (Nasdaq: BLCN). BCNA serves as a complementary product to BLCN, offering U.S. investors exposure to Chinese blockchain-related company A-shares for the first time.
For more information, please visit http://go.realityshares.com/story/the-bcna-etf/ or call 855-595-0240.
About Reality Shares
Reality Shares is an innovative asset management firm, ETF issuer and index provider. Reality Shares' 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.
For more information, visit www.realityshares.com.
1. CoinTelegraph: “China Filed For The Most Blockchain Patents in 2017”, Mar 25 2018
Definitions
The Reality Shares Nasdaq Blockchain China Index: The Index is designed to measure the returns of companies that are committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their proprietary use or for use by others, and are incorporated in Hong Kong and mainland China.
A-shares: They trade on the two Chinese stock exchanges, the Shanghai Stock Exchange and the Shenzhen Stock Exchange. A-shares are shares of mainland China-based companies.
Disclaimer
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 possible loss of principal. Shares are not FDIC insured and may lose value. Past performance does not guarantee future results.
For BCNA, there is no guarantee or assurance the methodology used to create the respective Benchmark Index will result in the Fund achieving positive returns. 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. Each Benchmark Index is constructed using a rules-based methodology based on quantitative models developed by Reality Shares. These quantitative models may be incomplete, flawed or based on inaccurate assumptions and, therefore, may lead to the selection of assets that produce inferior investment returns or provide exposure to greater risk of loss. Principal risks for the Fund include Authorized Participant Concentration Risk, Blockchain Technology Risk, Depositary Receipt Risk, Emerging Markets Risk, Equity Risk, ETF Trading Risk, Foreign Issuer Exposure Risk, Geographic Concentration 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. Please review the prospectus for important risks regarding the Fund, as each of these factors could cause the value of an investment in the Fund to decline over short-and long-term periods.
Blockchain technology is a new and developing technology protocol developed by companies in a manner for optimizing business practices. Blockchain technology is not a product or service with an individually attributable revenue stream. Blockchain technology may never develop optimized transactional processes that lead to increased economic returns to any company in which the Fund invests. There can be no assurance that blockchain technology will affect the primary lines of business in the Fund’s portfolio companies to have a positive impact on a company’s financial condition. The Benchmark Index was created and is maintained through a collaboration between Reality Shares and Nasdaq, and the Fund is listed on the Nasdaq exchange. The BCNA Fund is new and has limited trading history.
ETF shares are not individually redeemable. Investors buy and sell shares of the Fund on a secondary market. Only market makers or ‘authorized participants’ may trade directly with the Fund, typically in blocks of 25,000 shares. Brokerage commissions will reduce returns. Market Price is based on the midpoint of the bid/ask spread at the close of the market and does not represent the returns an investor would receive if shares were traded at other times.
Reality Shares Advisors, LLC is the Investment Advisor. ALPS Distributors, Inc. is the Distributor for the Fund. ALPS Distributors, Inc. is not affiliated with Reality Shares Advisors, LLC.
RLT001031 Exp. 7/31/2018.
