Metaurus Advisors, a financial technology and innovation company, has entered the exchange traded fund arena, launching two new U.S. dividend-oriented strategies.
On Wednesday, Metaurus rolled out the Metaurus Advisors’ US Equity Cumulative Dividends Fund – Series 2027 (NYSEArca: IDIV) and Metaurus Advisors’ US Equity Ex-Dividend Fund – Series 2027 (NYSEArca: XDIV), which have a 0.58% and 0.29% expense ratio, respectively.
The Metaurus Advisors’ US Equity Cumulative Dividends Fund – Series 2027 will try to reflect the performance of the Solactive Dividend Index, which aims to generate dividends of the companies in the S&P 500 Index without exposure to the price movements in the constituent index stocks.
The value of the Solactive Dividend Index and the value of the Dividend Fund’s Shares will be affected by the ordinary cash dividends that have been paid to date and general expectations in the market regarding the future levels of dividends, according to a prospectus sheet. It will try to achieve its target dividend exposure through cash and cash equivalents, along with S&P 500 Dividend Futures Contracts if deemed necessary.
“Investors may benefit from an investment in IDIV since it is not concentrated solely in high-dividend paying stocks, as some other dividend-focused investments may be. Dividends have historically been a good hedge against inflation,” according to Metaurus.