Metaurus Advisors cross-lists two ETFs in Mexico
Metaurus Advisors, a US-based asset management company, has, with the assistance of Bank of America Mexico, cross-listed two exchange traded funds on the Bolsa Mexicana de Valores (BMV).
The Metaurus US Equity Cumulative Dividend Fund - Series 2027 (IDIV: BMV) and the Metaurus US Equity Ex-Dividend Fund - Series 2027 (XDIV: BMV), which may have interesting tax characteristics for some non-US investors, separate the S&P 500 Index into its two return “components”– a “Dividend Component” based on the dividend cash flow (IDIV*) and a “Price Component” based on the capital appreciation (XDIV). By unbundling these two previously inseparable sources of equity returns, investors now have the ability to trade them independently of one another for the first time. They enable investors to better express preference between the dividend cash flow and price exposure of the S&P 500 Index by using these components in isolation, or, re-combining them in varying ratios to potentially introduce new risk and return profiles for their index exposure.
“We are excited to make these funds available in Mexico,” says Rick Sandulli, Co-CEO of Metaurus Advisors. “We think the tax characteristics will be of interest to those investors subject to dividend withholding tax. And, they offer an unparalleled ability for investors to customise their portfolio’s relative exposure to potential income versus capital appreciation.”
The Metaurus Cumulative Dividends Fund (IDIV) represents the “Dividend Component” and is designed to provide returns generated by the dividend growth of the S&P 500 Index, without stock price risk, while making periodic payments that replicate the actual dividends paid. IDIV employs a passive strategy that seeks to track, before fees and expenses, the Solactive US Cumulative Dividends Index-Series 2027.
The Metaurus Ex-Dividend Fund (XDIV*) represents the “Price Component” and is the remaining exposure to the S&P 500 Index after the future dividends have been stripped out. This fund is designed to provide full price exposure to the S&P 500 Index at a capital investment that is reduced by the value of the stripped dividends. XDIV employs a passive strategy that seeks to track, before fees and expenses, the Solactive Ex-Dividend Index-Series 2027.