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Metaurus ETF launches offer different routes to income


Fintech firm Metaurus Advisors LLC has launched two ETFs for investors seeking either dividend cash flow or equity market growth, each with a passive, index-based strategy.

The firm writes that not all investors have the same investment goals, with some preferring more cash flow through dividends while others prefer stock price appreciation.

Metaurus writes that index investors have never been able to separate the two from one another – until now. The Metaurus Advisors’ US Equity Cumulative Dividends Fund – Series 2027 (NYSE Arca: IDIV) is designed to provide income-oriented investors with a low cost way to participate solely in the actual ordinary dividends of the companies in the S&P 500 Index without exposure to the price movements in the constituent index stocks. The fund intends to pay monthly dividends through 2027 based on the actual ordinary dividends paid by companies in the index during the previous month.

Metaurus Advisors’ US Equity Ex-Dividend Fund – Series 2027 (NYSE Arca: XDIV) is designed to provide long-term growth-oriented investors with a way to participate in the growth potential of the companies in the S&P 500 Index at a reduced purchase price. XDIV does not use leverage. Instead, XDIV is designed to provide investors with full equity price exposure by being compensated up front at time of investment for the value of 10 years of projected dividends. Both funds are designed to liquidate in December 2027.

“We are pleased to welcome Metaurus Advisors to our growing community of the world’s most innovative ETF issuers, as they launch two new ETF strategies on NYSE Arca,” says Douglas Yones, NYSE’s Head of Exchange Traded Products. “We are committed to working with the industry to foster product development and provide even greater investor choice. Congratulations to the Metaurus team for their entry into the ETF marketplace.”

“We believe all investors should have choice,” says Richard Sandulli, Co-CEO of Metaurus Advisors LLC, the funds’ sponsor. “With IDIV and XDIV, investors and their advisors now have precise tools to balance current cash flow potential against their growth and risk tolerance, without sacrificing the diversification potential and low cost of index investing. These new ETFs are tools that can be used as standalone investments for dividend focused investors who don’t want equity price exposure, or for longer-term growth investors who seek potentially higher market returns. They can also be held in various combinations to achieve a proportional balance between cash flow and market exposure. This flexibility has not existed before due to the lack of available tools in the marketplace – until now. Here at Metaurus, we believe that thoughtful innovation is our differentiation.”

IDIV intends to employ a passive strategy designed to track the Solactive U.S. Cumulative Dividends Index – Series 2027. This index is designed to track the current value of ordinary dividends expected to be paid on the S&P 500 Index until December 2027.

XDIV intends to employ a passive strategy designed to track the Solactive U.S. Ex Dividends Index – Series 2027. This index is designed to track the value of shares in the index less the current value of ordinary dividends expected to be paid on the S&P 500 Index stocks until December 2027. IDIV intends to pay cash distributions monthly.

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