New ETF Focused on Buying S&P 500 at a “20% Discount”

Meanwhile, the Metaurus Advisors’ US Equity Ex-Dividend Fund – Series 2027 tries to reflect the performance of the Solactive Ex-Dividend Index, which is designed to track the value of shares in the S&P 500 without exposure to dividends.

The ETF aims to provide long-term growth-oriented investors a way to participate in the growth potential of the companies in the S&P 500 Index at a reduced purchase price.

Callahan explained that IDIV seeks to provide a direct exposure to dividends as a separate asset class via 10 years of monthly payments.

“These cash distributions replicate the actual cash dividends on the S&P 500 Index companies without price exposure to the underlying stocks,” he said. “Approximately $20 controls all the dividends on $100 of an index fund through 2027.”

He added a significant portion of the monthly distributions is expected to be a nontaxable return of basis for taxable US investors, saying non-US investors should not be subject to US tax withholding on any monthly distribution.

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