Newcomer Debuts ETF Pair

February 07, 2018

Yesterday, Metaurus Advisors rolled out an unusual pair of ETFs structured as commodity pools that separate out stock and dividend performance into two separate components. The Metaurus Advisors’ U.S. Equity Cumulative Dividends Fund – Series 2027 (IDIV) and the Metaurus Advisors’ U.S. Equity Ex-Dividend Fund – Series 2027 (XDIV) will both primarily invest in futures contracts.

The two funds list on the NYSE Arca. IDIV comes with an expense ratio of 0.58%, while XDIV charges 0.29%.

“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,” said Metaurus Co-CEO Richard Sandulli.

He notes that they can be used as stand-alone tools by investors who either want to focus on dividends with IDIV or seek higher market returns with XDIV. Sandulli also pointed out they could be held in combination to establish a desired balance between cash flow and market exposure.

Methodology

IDIV tracks the Solactive U.S. Cumulative Dividends Index – Series 2027, which solely captures the performance of the dividends of the S&P 500 Index. It will pay out monthly dividends through 2027 that reflect the ordinary dividends paid by the component companies of the S&P 500.

By way of contrast, XDIV solely reflects the price performance of stocks in the S&P 500 Index and tracks the Solactive U.S. Ex Dividends Index – Series 2027. According to the press release from Metaurus, the fund will offer investors "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 with an end date in mind. They will liquidate in December 2027. 

Contact Heather Bell at [email protected]

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