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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