Access tomorrow’s dividend growth today · 1 From Sept. 30, 2015 to Sep 30, 2016. Source: Bloomberg, Reality Shares Research. Past performance does not guarantee future results

Access tomorrow’s dividendgrowth... today

Disclaimer

FOR INSTITUTIONAL INVESTORS ONLY. MAY NOT BE REDISTRIBUTED TO RETAIL CLIENTS.FOR INSTITUTIONAL INVESTORS ONLY. MAY NOT BE REDISTRIBUTED TO RETAIL CLIENTS.FOR INSTITUTIONAL INVESTORS ONLY. MAY NOT BE REDISTRIBUTED TO RETAIL CLIENTS.FOR INSTITUTIONAL INVESTORS ONLY. MAY NOT BE REDISTRIBUTED TO RETAIL CLIENTS.

This material is presented for general information purposes only, and does not constitute an offer to sell securities.

This publication has been prepared and issued by Reality Shares, Inc. (“Reality Shares”). Reality Shares makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any data included in this publication. Without limiting any of the foregoing and to the extent permitted by law, in no event shall Reality Shares, nor any affiliate, nor any of their respective officers, directors, partners, or employees, have any liability for (a) any special, punitive, indirect, or consequential damages; or (b) any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified of the possibility of such damages, arising from any use of this publication or its contents.

This publication does not constitute general or personal investment advice or take into account the individual financial circumstances or investment objectives, or financial conditions of the institutional users who receive it. This does not constitute an offer or solicitation to purchase or sell any securities or funds, nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction.

Other than disclosures relating to Reality Shares, the information and material contained in this publication has been obtained from sources that Reality Shares believes to be reliable, but Reality Shares does not represent or warrant that it is accurate or complete.

Investing involves risks, including possible loss of principal. Past performance does not guarantee future results. There is no assurance the stated objective(s) will be met. Not FDIC insured. See the section “Principal Risks” in the prospectus for important risk disclosures. With DIVY, investments in options, swaps, forward contracts and futures contracts are subject to a number of risks, including Correlation Risk, Interest Rate Risk, Market Risk, Leverage Risk, and Liquidity Risk. Each of these risks could cause the Fund to vary from its stated objective, could cause the Fund to lose money and may have a negative impact on the value of your investment. LEAD, DFND and GARD are new with limited operating history. For LEAD, DFND, and GARD, additional principal risks include Equity Risk, ETF Trading Risk, Index Performance Risk, Index Tracking Error Risk, Market Risk, Investments in Other ETFs Risk and Non-Diversification Risk. Please refer to the Fund Risks for further explanation of individual risks.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This informatioBefore investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This informatioBefore investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This informatioBefore investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This information in in in is in the prospectus, and s in the prospectus, and s in the prospectus, and s in the prospectus, and may be obtained by visiting www.realityshares.com/funds or by calling 855may be obtained by visiting www.realityshares.com/funds or by calling 855may be obtained by visiting www.realityshares.com/funds or by calling 855may be obtained by visiting www.realityshares.com/funds or by calling 855----595595595595----0240. Please read the prospectus carefully before 0240. Please read the prospectus carefully before 0240. Please read the prospectus carefully before 0240. Please read the prospectus carefully before you invest. you invest. you invest. you invest.

Reality Shares Advisors, LLC is the Investment Advisor. ALPS Distributors, Inc. is the Distributor for the Fund. Employees of Dakota are registered representatives of GrandFund Investment Group, LLC, and provide third party distribution services for Reality Shares. ALPS Distributors, Inc. is not affiliated with Reality Shares Advisors, LLC or Dakota.

Shares of the Fund are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. 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.

Copyright© 2016 Reality Shares, Inc. All rights reserved.

RLT000490 Exp. 12/31/2016.

2FOR INSTITUTIONAL INVESTORS ONLY.MAY NOT BE REDISTRIBUTED TO RETAIL CLIENTS.

Today’s discussion

1Our philosophy

2Opportunity in dividend growth

3Access dividend growth

4The Reality Shares DIVS ETF (DIVY)

5The DIVCON Leaders Dividend ETF (LEAD)

6The DIVCON Dividend Guard ETF (GARD)

7The DIVCON Dividend Defender ETF (DFND)


DIVY’s investment objective is to seek long-term capital appreciation based on the growth of expected dividends, not stock price, of large cap companies. LEAD’s investment objective is to seek long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Leaders Dividend Index. DFND’s investment objective is to seek long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Dividend Defender Index. GARD’s investment objective is to seek long-term capital appreciation by tracking the performance, before fees and expenses, of the Reality Shares DIVCON Dividend Guard Index.

Problem: A challenging market environment

A roller coaster ride in

the equities

Since 1900, there have

been

61 bull and54 bear market years. The

average bear market

lasted 13.5 years.

4

Historically low interest rates in bonds

Uncertainty in alternatives and hedge funds

* As of Sep 30, 2016. Source: Bloomberg, Raymond James, Reality Shares Research. Past performance does not guarantee future results.

10 Year Treasury yield was

1.64% compared to a 35-

year historical average of

6.25%.*

Both the HFR Global and

HFR Equity Hedge indexes

have produced zero return

since 2005.

These strategies also tend

to have higher fees and

illiquidity.

FOR INSTITUTIONAL INVESTORS ONLY.MAY NOT BE REDISTRIBUTED TO RETAIL CLIENTS.

0

50

100

150

200

250

2006 2008 2010 2012 2014 2016

Hedge Fund Indexes vs S&P 500 Index(12/31/2005 - 9/30/2016)

HFRXEH Index

HFRXGL Index

SPXT Index

0%

5%

10%

15%

1981 1986 1991 1996 2001 2006 2011 2016

US Treasury Yield Historic Lows(12/31/1980 - 9/30/2016)

Problem: A challenging market environment

5

Market volatility in the S&P 5001

Over the past year, the S&P 500 has shown significant volatility. Fear and uncertainty make finding potentially safe investment opportunities a noteworthy challenge.


1800

1850

1900

1950

2000

2050

2100

2150

2200

1 From Sept. 30, 2015 to Sep 30, 2016. Source: Bloomberg, Reality Shares Research. Past performance does not guarantee future results.

In the past year1, the S&P

500 moved at least 1%

more than

1 out of every 4 days.This volatility can eat

away at earned

investment gains.

S&P dividends have risen in 40 out of 43 years

6

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015

Annual D

ivid

end G

row

th

Year

S&P 500 Y-O-Y DIVIDEND GROWTH (FROM 1973 TO 2015)

* S&P 500 Monthly Price Return Upside/Downside Capture Ratio by Dividend Growth from Jan. 1, 1973, to Dec. 31, 2015. Source Bloomberg, Compustat, S&P Capital IQ, Reality Shares Research as of 12/31/2015. Past performance does not guarantee future results. Dividends are not guaranteed and a company’s abilities to pay dividends may be limited. A company currently paying dividends may cease paying at any time.

Dividends have accounted for

>50%U.S. equity total returns since 1930

Dividends have compounded

at an annual growth rate of

6.5%


Dividend growers have historically outperformed

7

Data from Ned Davis and Reality Shares Advisors. Past performance is not a guarantee of future results.

We believe dividend growth is the byproduct of cash rich, strong balance sheet companies managed by disciplined management teams

with strong opinions about future earnings growth.

So how can we predict which companies will grow and which companies will cut dividends?


9.86%

7.33%

2.46%

-0.47%-2%

0%

2%

4%

6%

8%

10%

12%

S&P DividendGrowers &Initiators

S&P DividendPayers w/ No

Change

S&P Non-Dividend

Paying Stocks

S&P DividendCutters orEliminators

HISTORICAL ANN. RETURN BY DIVIDEND CATEGORY

1/31/1972 - 9/30/2016S&P

Dividend Growers & Initiators

S&P Dividend Payers w/ No Change

S&P Non-Dividend Paying Stocks

S&P Dividend Cutters or Eliminators

-4%

0%

4%

8%

12%

16% 20% 24% 28%

Avera

ge A

nnualized T

ota

l Retu

rnAnnualized Standard Deviation

Risk-Return Profile1/31/1972 - 9/30/2016

A new opportunity in dividend growth


Access tomorrow’s

dividend growth…

today

At Reality Shares, we focus solely on

dividend growth investing.

We offer a range of ETFs pinpointing and

capitalizing on the benefits of dividend

growth and investment in the stocks most

likely to increase their dividends while

avoiding those more likely to cut their

dividends.

Our rules-based, forward looking

methodology sets us apart in the market and

allows investors to access and harness the

power of dividend growth investing.


Our forward-looking dividend methodologies

Seeking tomorrow’s dividend growers today

DIVCON®DIVCON®DIVCON®DIVCON® is Reality Shares’ proprietary

dividend health rating system that forecasts

and ranks a company’s ability to increase

dividends in the next 12 months by evaluating

seven quantitative factors:

Future dividend growth rate

Our DIVSDIVSDIVSDIVS methodology cuts through the noise in the market to deliver long-term capital

appreciation based on the growth of dividends, not stock price, of large cap companies—

effectively isolating and accessing the true dividend growth rate of the S&P 500.

10

5

4

3 2

1

DIVCON

› Expected dividend growth

› Free cash flows

› Earnings per share growth

› Recent dividend actions

› Buybacks and repurchases

› Bloomberg fundamentals

› Altman z-scores


Putting DIVCON to the test

11

Data from Ned Davis and Reality Shares Advisors. Past performance does not guarantee future results. * The DIVCON Leaders Dividend Index returns are based on back-tested results from Dec. 29, 2000 through Oct. 31, 2015, at the inception date of the index. Past performance does not guarantee future results. Index methodology available upon request. Results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected the performance, and cannot account for all financial risk that may affect the actual performance of the Fund. Actual Fund performance may vary significantly from these back-tested index returns. Any performance prior to the date of index inception is hypothetical.

The power of the DIVCON model is the ability to distinguish higher

quality companies from lower quality companies.


DIVCON Leaders

DIVCON Laggards

S&P 500 Total

Return

0%

2%

4%

6%

8%

10%

12%

10% 20% 30%

Annualized R

etu

rn %

Annualized Risk %

RISK-RETURN PROFILE*12/29/2000-9/30/2016

9.37%

5.26%

2.70%

0%

2%

4%

6%

8%

10%

12%

DIVCON Leaders S&P 500 TotalReturn

DIVCON Laggards

HISTORICAL ANNUALIZED RETURN*

12/29/2000 - 9/30/2016

Benefits of Isolating the Dividend Growth Rate

Accessing the dividend growth rate of large-cap companies

The S&P 500 dividend growth rate has been positive in

40 of the last 43 years, and dividend growth has

outpaced share price growth and total return since 2000.

Low correlation

Isolated dividend growth is a fixed income replacement

offering capital appreciation potential while historically

delivering low correlation and low drawdowns across

market environments.

Low volatility

Since DIVY’s inception, the S&P 500 moved 1% or more

118 times (more than 1 out of every 4 days), while DIVY’s

NAV moved 1% only 14 times during the same timeframe.

12

DIVY inception date is Dec. 18, 2014. 1 Sep 30, 2015 to Sep. 30, 2016. 2 Dec. 18, 2014 to Sep. 30, 2016. Past performance does not guarantee future results. Source: Bloomberg, S&P Capital IQ, Reality Shares Research. Dividend growth rate: The growth of the indicated dividend of the S&P 500 index.

118

14

0

20

40

60

80

100

120

140

S&P 500 DIVY

DAYS WITH 1% MOVES2

0.290.40

-0.09

-0.5

0

0.5

1

S&P 500Total Return

HFRX GlobalHedge Fund

Index

Barclays USAgg Bond

LOW CORRELATION1

LEAD

Investing in dividend leaders

DFND

Long the dividend leaders, short the dividend laggards

GARD

Long dividend leaders with a dynamic hedge on the dividend laggards

DIVY

Isolating and accessing the dividend growth rate

The Reality Shares ETF FamilyPOWERED BY DIVCON™POWERED BY DIVCON™POWERED BY DIVCON™POWERED BY DIVCON™


Chasing Yield vs Seeking QualityIn the search for yield, investors have been piling money into the highest yielding sectors, and

Energy, Telecom Services and Utilities were the top three performing broad market sectors YTD1.

However, these three sectors combined represent only 13.2% of the S&P 500.

14

1 As of Sep. 30, 2016. Past performance does not guarantee future results. Source: S&P Capital IQ, Reality Shares Research.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD1

InfoTech

46.55%

Energy

28.77%

Energy

29.14%

TeleServ

32.13%

Energy

32.38%

ConsStap

-17.65%

InfoTech

59.92%

ConsDiscr

25.72%

Utilities

14.83%

Financial

26.26%

ConsDiscr

40.96%

Utilities

24.29%

ConsDiscr

8.43%

Energy

16.04%

ConsDiscr

36.08%

Utilities

19.6%

Utilities

12.76%

Energy

22.22%

Materials

19.98%

Healthcare

-24.48%

Materials

45.23%

Industrial

23.92%

ConsStap

10.53%

ConsDiscr

21.87%

Healthcare

38.74%

Healthcare

23.3%

Healthcare

5.21%

TeleServ

13.79%

Materials

34.77%

TeleServ

15.98%

Healthcare

4.85%

ConsDiscr

17.23%

Utilities

15.81%

Utilities

-31.55%

ConsDiscr

38.76%

Materials

19.92%

Healthcare

10.18%

Healthcare

15.19%

Industrial

37.63%

InfoTech

18.18%

InfoTech

4.27%

Utilities

13.09%

Industrial

29.73%

Industrial

15.95%

Financial

3.72%

Utilities

16.87%

InfoTech

15.54%

TeleServ

-33.62%

S&P 500

23.45%

Energy

17.86%

ConsDiscr

4.41%

S&P 500

13.41%

Financial

33.21%

Financial

13.1%

ConsStap

3.77%

InfoTech

11.12%

Financial

27.92%

ConsDiscr

12.14%

S&P 500

3.%

Financial

16.16%

ConsStap

11.6%

ConsDiscr

-34.73%

Industrial

17.27%

S&P 500

12.78%

Energy

2.77%

InfoTech

13.15%

S&P 500

29.6%

ConsStap

12.87%

S&P 500

-.73%

Materials

9.59%

S&P 500

26.38%

Materials

10.79%

Materials

2.15%

Materials

15.73%

Industrial

9.83%

Energy

-35.93%

Healthcare

17.07%

TeleServ

12.3%

InfoTech

1.33%

TeleServ

12.5%

InfoTech

26.23%

S&P 500

11.39%

TeleServ

-1.73%

Industrial

8.92%

Energy

22.39%

S&P 500

8.99%

ConsStap

1.34%

S&P 500

13.62%

TeleServ

8.45%

S&P 500

-38.49%

Financial

14.8%

Financial

10.83%

TeleServ

.84%

Industrial

12.46%

Materials

22.73%

ConsDiscr

8.05%

Financial

-3.48%

S&P 500

6.08%

Utilities

21.1%

Financial

8.23%

InfoTech

.38%

ConsStap

11.76%

Healthcare

5.39%

Industrial

-41.52%

Energy

11.29%

ConsStap

10.67%

S&P 500

.%

Materials

12.24%

ConsStap

22.68%

Industrial

7.52%

Industrial

-4.72%

ConsStap

5.42%

Healthcare

13.31%

ConsStap

6.04%

Industrial

.35%

Industrial

11.02%

S&P 500

3.53%

InfoTech

-43.68%

ConsStap

11.2%

InfoTech

9.13%

Industrial

-2.92%

ConsStap

7.52%

Energy

22.27%

Materials

4.68%

Utilities

-8.39%

ConsDiscr

2.41%

ConsStap

9.23%

InfoTech

2.13%

ConsDiscr

-7.35%

InfoTech

7.7%

ConsDiscr

-14.32%

Materials

-47.05%

Utilities

6.8%

Utilities

.86%

Materials

-11.64%

Energy

2.33%

Utilities

8.75%

TeleServ

-1.91%

Materials

-10.36%

Healthcare

.07%

TeleServ

3.28%

Healthcare

.24%

TeleServ

-9.05%

Healthcare

5.78%

Financial

-20.84%

Financial

-56.95%

TeleServ

2.63%

Healthcare

.71%

Financial

-18.41%

Utilities

-2.91%

TeleServ

6.49%

Energy

-9.99%

Energy

-23.55%

Financial

-.28%

Performance overview


1 Data as of Sep. 30, 2016. 2 Jun. 30, 2016 through Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

Performance1 3M 1Y Since Inception

DIVCON Leaders Dividend ETF (LEAD) Inception Date: 1/6/2016

LEAD NAV Returns 1.35% N/A 5.75%

LEAD Market Price Returns 1.97% N/A 6.10%

DIVCON Dividend Defender ETF (DFND) Inception Date: 1/14/2016

DFND NAV Returns 1.19% N/A -3.23%

DFND Market Price Returns 1.07% N/A -3.44%

DIVCON Dividend Guard ETF (GARD) Inception Date: 1/14/2016

NAV Returns 1.40% N/A -11.82%

Market Price Returns 1.73% N/A -11.65%

DIVS ETF (DIVY) Inception Date: 12/18/2014

NAV Returns 1.86% 4.36% 7.62%

Market Price Returns 2.67% 4.62% 7.35%

0

2

4

6

8

10

12

14

Standard Deviation2


Reality Shares DIVS ETF (DIVY)Using DIVY to reduce volatility and diversify fixed income exposure

› The Reality Shares DIVS ETF offers

investors a new way to approach dividend

investing by isolating and accessing the

dividend growth rate.

› By isolating dividend growth from stock

price, the Fund provides the potential to

participate in a portion of the dividend

growth rate of large-cap U.S. companies

without exposure to the volatility of their

underlying stock prices.

40/43years dividends of the

S&P 500 have risen1

17

An Alternative Investment offering Limited

Interest Rate Risk

1 Jan. 1, 1973 – Dec. 31, 2015. S&P 500 dividends had negative returns in 2000, 2008 and 2009. Source: Bloomberg, Compustat, S&P Capital IQ, Reality Shares Research.

Seeks exposure to the growth rate of expected dividends, looking to deliver

long-term capital appreciation rather than income and yield.

Offers the potential to deliver lower correlation and lower volatility compared

to equity market price returns.

Institutional investors have been investing in dividend growth for more than 15 years,

but DIVY is the first isolated dividend growth strategy offered in an easily

tradable ETF.

Low correlationIsolated access 1st of its kind


Why DIVY?

Isolating the dividend growth rate


0

50

100

150

200

250

300

2000 2002 2004 2006 2008 2010 2012 2014 2016

Indexed to 100

S&P 500 DIVIDEND GROWTH HAS OUTPACED SHARE PRICE GROWTH & TOTAL RETURN(Dec. 31, 2000 - Sep. 30, 2016)*

S&P 500 Total Return S&P 500 Dividend S&P 500 Price

* For illustrative purposes only. Past performance does not guarantee future returns. The cumulative returns represented in the chart and the annualized returns are from Dec. 29, 2000 through Sep. 30, 2016. Price Growth: The rate of return of the market price over the specified time period. Dividend Growth: The growth of the indicated dividend of the S&P 500 Index. Total Return: The actual rate of return over the specified time period, including dividend reinvestment.

Source: Bloomberg, Compustat, S&P Capital IQ, Reality Shares Research. Past performance does not guarantee future results.

Performance1 YTD 1Y 3Y 5Y 7Y 10Y 15Y

S&P 500 Dividend Growth 3.73% 5.21% 8.75% 11.40% 11.47% 6.32% 7.39%

S&P 500 Total Return Index 7.84% 15.43% 11.16% 16.37% 13.18% 7.24% 7.15%

Barclays US Aggregate Bond Index 5.80% 5.19% 4.03% 3.08% 4.10% 4.79% 4.80%

HFRX Global Hedge Fund Index 1.33% 0.71% -0.22% 1.31% 0.70% -0.19% 1.71%

Annualized Returns*Dividend Growth: 7.0%Price Growth 3.2%Total Return 5.3%

Isolating the dividend growth rate as a bond

alternative


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015

10 Y

ear Tre

asu

ry R

ate

S&P 5

00 L

TM

Annual D

ivid

end G

row

th

S&P 500 Annual Dividend Growth vs. 10Y Treasury Rate (1972 - 2015)

10Y Treasury Rate Rising Periods Explained SPX LTM Div Annual Growth

Avg. S&P 500 LTM Annual Div Growth: 6.4% 10 Year Treasury Rates

10 Year Treasury went from 5.95% to 14.59% between 1972 and 1981.

S&P 500 dividends grew 8.07% on average during that period.

Rates rise 1972-1981

LTM: Last 12 Month. Source: Bloomberg, Compustat, S&P Capital IQ, BNP, Reality Shares Research. Past performance does not guarantee future results.

Dividends have historically grown during periods of both rising and falling interest rates, being negatively correlated to Bonds when interest rates rise and positively correlated when interest rates are flat or falling.

Dividend swaps as a bond alternative


For the six year period 2009-2015, S&P 500 Dividend Swaps exhibited positive upside capture and NEGATIVE downside capture relative to the Barclays U.S. Aggregate Bond Index.

95.9%

-66.4%

-100%

-60%

-20%

20%

60%

100%

140%

Upside capture Downside capture

Captu

re R

atio %

2009-2015 S&P 500 dividend swaps compared to Barclays U.S. Aggregate Bond Index

upside & downside capture

Source: Bloomberg, Compustat, S&P Capital IQ, BNP, Reality Shares Research. Past performance does not guarantee future results.

Using DIVY to reduce overall volatility

21

DAYS WITH 1% MOVES1 AVERAGE RETURN ON DAYS WITH

1% S&P 500 MOVES1

Since DIVY’s inception, the S&P 500 moved at least 1% 118 times1 . This shows significant volatility. In comparison, the Reality Shares DIVS ETF had just 14 days with 1% or greater moves.

Even on the days the S&P 500 moved 1 or more percent, DIVY exhibited very little movement, showing its historical resilience during market volatility1.


1 Data from Dec 17, 2014 - Sep 30, 2016. Source: Bloomberg, Reality Shares Research. Past performance does not guarantee future results.

118

14

0

20

40

60

80

100

120

140

S&P 500 DIVY

1.51%

-1.66%

0.04%

-0.04%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

+1% MOVES -1% MOVES

3.0% 3.1% 3.8%

14.5%

0%

4%

8%

12%

16%

DIVY NAV Barclays USAGG Bond

HFRX GlobalHedge Fund

S&P 500 TotalReturn

Reality Shares DIVS ETF (DIVY)


1 Sep 30, 2015 to Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

Historically low correlation1 Historically low standard deviation1

0.290.40

-0.09

-0.5

0

0.5

1

S&P 500 Total ReturnHFRX Global HedgeFund Index

Barclays US Agg Bond

Reality Shares DIVS ETF (DIVY)


Trading Symbol DIVY

Category Alternative

Inception Date 12/18/2014

# of Holdings 6

CUSIP 75605A 108

Listing Exchange NYSE Arca

Intraday Symbol DIVY.IV

Expense Ratio 0.85%

Performance1 YTD 3M 1Y 5Y 10YAnnualized

ReturnAnnualized

Risk

DIVY NAV Returns 3.95% 1.86% 4.36% N/A N/A 4.19% 6.57%

DIVY Market Price Returns 3.82% 2.67% 4.62% N/A N/A 4.04% 8.57%

Barclays US Aggregate Bond Index 5.80% 0.46% 5.19% 3.76% 5.13% 3.62% 3.45%

HFRX Global Hedge Fund Index 1.33% 2.42% 0.72% -0.46% -0.33% -0.33% 3.93%

Inception date is Dec. 18, 2014. 1 As of Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares weretraded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

FUND DETAILS

FUND PERFORMANCE

Performance1 YTD 3M 1Y 5Y 10YAnnualized

ReturnAnnualized

Risk

S&P 500 Total Return 7.84% 3.85% 15.43% 16.37% 7.24% 6.49% 14.97%

90

95

100

105

110

115

DIVY NAV performance since inception(12/17/2014 – 9/30/2016)

DIVY NAV S&P 500

Adding DIVY to reduce volatility and interest

rate risk


60%

40%

Traditional Asset Class Allocation

Stocks Bonds

50%

30%

20%

Asset Class Allocation with DIVY

Stocks Bonds DIVY

DIVY is designed to perform throughout virtually any market environment. Because it was

designed to have a lower volatility than the S&P 500 while exhibiting higher returns than bonds,

DIVY serves as a potentially effective replacement for part of your bond portfolio allocation.

The DIVCON Leaders Dividend ETF (LEAD)


Why LEAD?

26

Investing in the dividend growth leaders

› The Leaders Dividend ETF uses DIVCON’s

uniquely forward-looking methodology to

systematically weight and invest in only

the dividend growth leaders.

› These are the healthiest large-cap

companies with the highest probability of

increasing their dividend in the next 12

months. The Fund utilizes a quantitative

evaluation process and seeks to deliver

diversified market exposure.

97%of DIVCON 5 companies

increased their dividend1

Sophisticated, highly analytical and institutional-quality, rules-based stock picking ETF

Invests in high quality companies within the S&P 500 with the highest probability to increase their dividends

Access to the healthiest

companies according to their

DIVCON Score

Institutional-quality


1 Jan. 3, 2000 through Dec. 31, 2015. Past performance does not guarantee future results.

DIVCON Leaders Dividend Index

27

* The DIVCON Leaders Dividend Index returns are based on back-tested results from Jan. 1, 2001, through Oct. 31, 2015. Index performance is quoted net of gross expenses of 0.43%. Past performance does not guarantee future results. Index methodology available upon request. Results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected the performance, and cannot account for all financial risk that may affect the actual performance of the Fund. Actual Fund performance may vary significantly from these back-tested index returns.


0

50

100

150

200

250

300

350

400

450

Dec-00 Dec-02 Dec-04 Dec-06 Dec-08 Dec-10 Dec-12 Dec-14

PRE-INCEPTION (12/29/2000 – 10/31/2015)

Reality Shares DIVCON Leaders Dividend Index S&P 500 Total Return

Statistics (Pre-Inception)Dec. 29, 2000 – Oct. 31, 2015

Alpha Beta Corr.SharpeRatio

SortinoRatio

R2 UpsideCapture

DownsideCapture

Ann.Return

Ann.Risk

DIVCON Leaders Dividend Index - - - 0.63 1.31 - - - 9.3% 15.8%

VS S&P 500 Total Return Index 4.7% 0.83 0.94 0.36 0.64 0.88 102.0% 80.4% 5.2% 17.8%

Strong dividend growers

28

Investing in the dividend growth leaders


1 Dec. 31, 2015 through Sep. 30, 20162 Sep. 30, 2006 through Sep. 30, 2016Past performance does not guarantee future results.

60.6%

46.5%

20%

30%

40%

50%

60%

70%

Holdings with dividend increases

LEAD vs S&P in dividend increases YTD1

LEAD S&P 500

24.7%

14.3%

0%

5%

10%

15%

20%

25%

30%

Average Dividend Growth

Annualized 5Y Weighted Average Dividend Growth1

LEAD S&P 500

Over the past 10 years: 0000 dividend cuts in the LEADers index vs. 313131319 9 9 9 dividend cuts in the S&P

500.2

DIVCON Leaders – Historically Superior Growth

Characteristics


12.60%

5.10%

15.30%

6.10%

2.20%

10.50%

5.48%

1.46%

7.98%

0%

2%

4%

6%

8%

10%

12%

14%

16%

3 Yr EPS CAGR (H) 3 Yr Revenue CAGR(H)

3 Yr Dividend CAGR(H)

LEAD S&P 500 Average of Top Competitors

Comparing 3-YR Earnings, Revenue, and Dividend Growth to S&P and 5 largest Dividend ETFs

As of Jul. 29, 2016. Past performance does not guarantee future results.

DIVCON Leaders Dividend ETF (LEAD)


Trading Symbol LEAD

Category Large Cap Blend


# of Holdings 34

Avg. Market Cap $44.71B

CUSIP 75605A 405

Listing Exchange BATS

Intraday Symbol LEAD.IV

Expense Ratio 0.43%

Performance1 3M 1Y 5Y 10Y Since Inception*

LEAD NAV Returns 1.35% N/A N/A N/A 5.75%

LEAD Market Price Returns 1.97% N/A N/A N/A 6.10%

Reality Shares DIVCON Leaders Dividend Index 1.46% N/A N/A N/A 6.08%

S&P Total Return 3.85% 15.43% 16.37% 7.24% 9.27%

28.43%

24.66%

12.95%

10.75%

9.95%

5.95%

2.99%2.28%

2.04%

Industrials

Consumer Discretionary

Consumer Staples

Information Technology

Health Care

Financials

Materials

Energy

Real Estate

* Inception date is Jan. 6, 2016. 1 As of Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares weretraded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

1 Tyson Foods, Inc. 4.31%

2 Stryker Corporation 3.82%

3Linear Technology Corp.

3.80%

4Waste Management, Inc.

3.72%

5 Texas Instruments Inc. 3.72%

6 Equifax Inc. 3.67%

7 Merck & Co. 3.41%

8CH Robinson Worldwide

3.34%

9Expeditors Int. of Washington

3.30%

10 Emerson Electric 3.26%

FUND DETAILS TOP 10 HOLDINGS SECTOR WEIGHTS1

FUND PERFORMANCE

Subject to Change

DIVCON Leaders Dividend ETF (LEAD)

31

1 Jun. 30, 2016 to Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investmentreturn, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

SECTOR CONTRIBUTION1 SECURITY CONTRIBUTION1

Top 5 Avg Wgt % Return % Contr %

Linear Technology 3.53% 28.12% 0.83%

Tiffany 2.61% 20.51% 0.49%

Tyson Foods 4.17% 12.02% 0.46%

Wabtec 2.81% 16.42% 0.44%

Texas Instruments 3.56% 12.63% 0.42%

Bottom 5 Avg Wgt % Return % Contr %

Tractor Supply 2.87% -25.93% -0.81%

McKesson 2.99% -10.52% -0.32%

Twenty-FirstCentury Fox

2.64% -9.79% -0.27%

Lowe’s 2.96% -8.40% -0.25%

Sherwin-Williams 3.10% -5.52% -0.17%

Subject to Change

-1.5% -0.5% 0.5% 1.5%


Materials

Health Care

Energy

Financials

Consumer Staples

Real Estate

Industrial


Subject to Change


1.46%Net

DIVCON Dividend Guard ETF (GARD)


Why GARD?

33

Long dividend growers with a dynamic

market hedge

› The Dividend Guard ETF invests in the

leading dividend growth companies based

on their DIVCON score, with the addition

of a dynamic market hedge.*

› The Guard Indicator attempts to predict

market health and long-term trends by

analyzing downside deviation, price

momentum, and volatility across S&P

market sectors.

50/50long/short position when

Guard Indicator is negative

Always invests in the large-cap companies most likely to increase their dividend in the next 12 months based on their DIVCON scores

When the Guard Indicator forecasts a market downturn, the ETF dynamically reduces long exposure to 50% while adding a 50%

short position in the lowest DIVCON rated companies

*Dynamic market hedgeAccess to DIVCON leaders


DIVCON Dividend GARD Index (GARD)

34

* The DIVCON Dividend Guard Index returns are based on back-tested results from Jan. 1, 2001, through Oct. 31, 2015. Index performance is quoted net of gross expenses of 0.95%. Past performance does not guarantee future results. Index methodology available upon request. Results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected the performance, and cannot account for all financial risk that may affect the actual performance of the Fund. Actual Fund performance may vary significantly from these back-tested index returns.


0

100

200

300

400

500

600

700

800


PRE-INCEPTION (12/29/2000 – 10/31/2015)

Guard On/Off Reality Shares DIVCON Dividend Guard Index S&P 500 Total Return



SortinoRatio

R2 UpsideCapture

DownsideCapture

Ann.Return

Ann.Risk

DIVCON Dividend Guard Index - - - 1.37 16.11 - - - 13.6% 9.6%




Trading Symbol GARD

CategoryLong-Short

Equity


# of Holdings 34


CUSIP 75605A 603


Intraday Symbol GARD.IV

Expense Ratio1.05% (Gross) /

0.95% (Net)2


GARD NAV Returns 1.40% N/A N/A N/A -11.82%

GARD Market Price Returns 1.73% N/A N/A N/A -11.65%

Reality Shares DIVCON Dividend Guard Index 1.44% N/A N/A N/A -11.74%

S&P Total Return 3.85% 15.43% 16.37% 7.24% 16.52%

* Inception date is Jan. 14, 2016. 1 As of Sep. 30, 2016. 2 Net expense ratio of 0.95% with a Contractual Fee Waiver through February 28, 2017. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/askspread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

1 Linear Technology 3.91%

2 Texas Instruments 3.80%

3 Equifax 3.37%

4 Tyson Foods 3.35%

5 Merck & Co. 3.34%

6 Visa 3.29%

7 Expeditors Intl. Wash. 3.29%

8FactSet Research Systems

3.27%

9 Stryker Corp. 3.24%

10 Waste Management 3.22%

FUND DETAILS GUARD INDICATOR

FUND PERFORMANCE

TOP 10 LONG HOLDINGS

10(Positive)100% Long

Subject to Change

5

4

3

2

1

67

8

9

10


36





Tiffany 2.82% 20.51% 0.53%

Texas instruments 3.64% 12.63% 0.43%

Wabtec 2.65% 16.42% 0.42%

Jones Lang LaSalle

2.84% 16.77% 0.42%


Tractor Supply 2.69% -25.93% -0.76%

McKesson 3.27% -10.52% -0.35%

Twenty-First Century Fox

2.56% -9.79% -0.26%

Lowe’s 3.00% -8.40% -0.25%

Sherwin-Williams 2.93% -5.52% -0.16%

Subject to Change

-5.0% -3.0% -1.0% 1.0%


Materials

Health Care

Consumer Staples

Financials

Energy

Real Estate

Industrials


1.65%Longs

Subject to Change


The DIVCON Dividend Defender ETF (DFND)


Why DFND?

38

Long dividend growers and short dividend

cutters

› The Reality Shares DIVCON Dividend

Defender ETF features a long/short equity

portfolio that seeks more stable returns

than a long-only equity portfolio.

› The Fund uses DIVCON’s forward-looking

dividend rating system, constructing an

investment portfolio 75% long companies

most likely to increase dividends and 25%

short companies most likely to cut their

dividends.

75/25Long/short positions in

DIVCON Leaders and

Laggards

Has the potential to provide more stable overall returns, with lower volatility and correlation

By shorting low-quality companies, the Fund may provide more stable results in periods of heightened market volatility

Short the lowest qualityPotential for more stability


DIVCON Dividend Defender Index (DFND)

39

* The DIVCON Dividend Defender Index returns are based on back-tested results from Jan. 1, 2001, through Oct. 31, 2015. Index performance is quoted net of gross expenses of 0.95%. Past performance does not guarantee future results. Index methodology available upon request. Results are based on criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected the performance, and cannot account for all financial risk that may affect the actual performance of the Fund. Actual Fund performance may vary significantly from these back-tested index returns.


0

50

100

150

200

250

300


PRE-INCEPTION (12/29/2000 – 10/31/2015)

Reality Shares DIVCON Dividend Defender Index S&P 500 Total Return Hedge Fund Research HFRX Equity Hedge Index



SortinoRatio

R2 UpsideCapture

DownsideCapture

Ann.Return

Ann. Risk

DIVCON Dividend Defender Index - - - 0.90 3.42 - - - 6.5% 5.7%

VS HFRX Equity Market Index 5.2% 0.34 0.55 0.11 0.16 0.33 93.0% 33.9% 1.9% 9.4%


DIVCON Dividend Defender ETF (DFND)


Trading Symbol DFND

CategoryLong-Short

Equity


# of Holdings 44


CUSIP 75605A 504


Intraday Symbol DFND.IV

Expense Ratio 0.95%


DFND NAV Returns 1.19% N/A N/A N/A -3.23%

DFND Market Price Returns 1.07% N/A N/A N/A -3.44%

Reality Shares DIVCON Dividend Defender Index 1.43% N/A N/A N/A -3.16%

HFRX Equity Hedge Index 3.06% 0.13% 2.58% -0.67% 3.13%

S&P Total Return 3.85% 15.4% 16.4% 7.24% 16.52%

* Inception date is Jan. 14, 2016. 1 As of Sep. 30, 2016. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment return, and principal value of the Fund will fluctuate so that shares when sold may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares weretraded at other times. Returns over one year are annualized. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Visit realityshares.com for performance data current to the most recent month end.

1 Tyson Foods 3.49%

2 Linear Technology 3.08%

3 Stryker 3.07%

4 Waste Management 3.01%

5 Texas Instruments 3.00%

FUND DETAILS TOP 5 LONG HOLDINGS

FUND PERFORMANCE

TOP 5 SHORT HOLDINGS

1 Newmont Mining -9.33%

2 FirstEnergy -4.85%

3 Freeport-McMoRan -2.99%

4 EQT Corporation -2.84%

5Pioneer Natural Resources

-2.76%

TOP 3 LONG SECTORS TOP 3 SHORT SECTORS

1 Industrials 22.90%

2Consumer Discretionary

19.87%

3 Consumer Staples 10.41%

1 Utilities -10.02%

2 Materials -9.81%

3 Energy -5.77%

Subject to ChangeSubject to Change

DIVCON Dividend Defender ETF (DFND)

41





Tiffany 2.13% 20.51% 0.40%

Tyson Foods 3.41% 12.02% 0.38%

Wabtec 2.30% 16.42% 0.36%

Texas Instruments 2.90% 12.63% 0.34%


Tractor Supply 2.36% -25.93% -0.67%

Pioneer Natural Resrc.

-2.52% 22.80% -0.51%

McKesson 2.43% -10.52% -0.26%

Twenty-First Century Fox

2.16% -9.79% -0.22%

Lowe’s 2.42% -8.40% -0.21%

Subject to Change

-5.0% -3.0% -1.0% 1.0%


Energy

Materials

Health Care

Telecom. Services

Financials

Consumer Staples

Real Estate

Industrials

Utilities


0.24%

1.19%

Shorts

Longs

Subject to Change


DFND and portfolio asset allocation


60%

40%

Traditional Asset Class Allocation

Stocks Bonds

55%35%

10%

Asset Class Allocation with DFND

Stocks Bonds DFND

DFND, by replacing a portion of your stock and bond portfolios, is designed to reduce interest

rate risk associated with bonds and can potentially improve returns. A 10% allocation to DFND

maintains a similar overall equity exposure while the short equity hedge seeks to help to reduce

volatility.

In conclusion


Consider LEAD as an alternative to higher yielding dividend strategies.

Consider DIVY as a fixed income alternative.

Get in touch today to gain access to the future of

dividend growth

(855) 595-0240

[email protected]

www.realityshares.com


Dakota Funds Group(610) [email protected]

Appendix


Four convenient ways to access the benefits of

dividend growth

46

Low Market Exposure High Market Exposure

Altern

ative

Tra

ditio

nal

DIVYDIVYDIVYDIVY

DFNDDFNDDFNDDFND

LEADLEADLEADLEAD

GARDGARDGARDGARD GARDGARDGARDGARD

LEADLEADLEADLEADReality Shares DIVCON Leaders Dividend ETF

DFNDDFNDDFNDDFNDReality Shares DIVCON Dividend Defender ETF

GARDGARDGARDGARDReality Shares DIVCON Dividend Guard ETF

DIVYDIVYDIVYDIVYReality SharesDIVS ETF


Documents

Access tomorrow’s dividend growth today · 1 From Sept. 30, 2015 to Sep 30, 2016. Source: Bloomberg, Reality Shares Research. Past performance does not guarantee future results