Helping both funds is the fact they buy larger positions in their long holdings than their shorts.
Overall, DFND is down 3 percent since January, while its rival is up 18.4 percent over the same period, according to Thomson Reuters Lipper. The S&P 500 has climbed around 8.5 percent this year, including dividends.
Reality Shares's Ervin is not backing down, warning investors that buying companies for their dividends without attention to their quality cannot work forever. In addition to holding on to the underperforming shorts, the ETF is betting on a rise in dividend-paying Tyson Foods Inc., Waste Management Inc. and Linear Technology Corp.
This article was provided by Reuters.