Simeon Hyman talks dividends and bitcoin futures on CNBC’s “ETF Edge”

Key Funds
CNBC | January 31, 2022

CNBC’s Bob Pisani calls dividends a “hot topic” and discusses NOBL and the S&P 500 Dividend Aristocrats with ProShares’ Simeon Hyman. Hyman says “growing dividends consistently and in excess of even elevated levels of inflation is really important,” noting the Aristocrats, as a group, grew dividends 14% in 2020 and 10% in 2021. Shifting to bitcoin futures, the two review the first U.S. bitcoin-linked ETF—BITO—and its steady inflows despite recent declines in bitcoin. “There's a lot of volume, there's a lot of liquidity, there's a lot of trading in the ETF,” says Hyman, and “very good tracking to underlying spot.”

See NOBL index holdings and performance. See BITO performance.

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The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. ET (when NAV is normally determined for most funds) and do not represent the returns you would receive if you traded shares at other times. Your brokerage commissions will reduce returns. Current performance may be lower or higher than the performance quoted. For standardized returns and performance data current to the most recent month end, see above.

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Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.

Investing involves risk, including the possible loss of principal. ProShares ETFs are subject to certain risks, including the risk that the fund may not track the performance of the indexes and that the funds’ market price may fluctuate, which may decrease performance. Please see their summary and full prospectuses for a more complete description of risks. 

 Bitcoin and bitcoin futures are a relatively new asset class and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of an investment in BITO could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.

BITO ETF is actively managed and invests in bitcoin futures contracts. The ETF does not invest directly in or hold bitcoin. This ETF may not be suitable for all investors. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund's performance and its ability to achieve its investment objective. 

“Spot” price refers to the price of bitcoin that can be purchased immediately.

Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media.

BITO is non-diversified and concentrates its investments. Non-diversified and narrowly focused investments typically exhibit higher volatility.

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The "S&P 500® Dividend Aristocrats®" Index is a product of S&P Dow Jones Indices LLC and its affiliates and has been licensed for use by ProShares. "S&P®" is a registered trademark of Standard & Poor's Financial Services LLC ("S&P") and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. ProShares have not been passed on by S&P Dow Jones Indices LLC and its affiliates as to their legality or suitability. ProShares based on the S&P 500 Dividend Aristocrats Index are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates, and they make no representation regarding the advisability of investing in ProShares. THESE ENTITIES AND THEIR AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

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ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.

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