Divides into two return components: Dividend & Price
July 15, 2019 — HOBOKEN, N.J.–(BUSINESS WIRE)–Metaurus Advisors, a financial innovation and asset management company, today announced it was granted a patent (USPTO Patent No. 10,339,603) for the first-ever separation of an equity index into its two return “components”— a “Dividend Component” based on the dividend cash flow and a “Price Component” based on the capital appreciation.
These two previously inseparable sources of equity returns can now be invested in and traded independently of one another for the first time.
“We are very pleased that the US Patent and Trademark Office recognized Metaurus’ innovation. This advancement gives individual investors a pioneering tool to fine-tune their portfolios’ relative exposure to potential income versus capital appreciation. This may allow an investor to potentially achieve higher dividend cash flow and less stock price exposure, or vice versa, depending on their unique risk tolerance and time horizon,” said Richard Sandulli, Metaurus Co-CEO. “This latest action by the USPTO reinforces both our commitment to innovation and to protecting our intellectual property.”
Dividend & Price Components
Metaurus is proud to offer this patented technology for the first time through their two NYSE-Arca listed funds; the Metaurus US Cumulative Dividends Fund (ticker: IDIV) and the Metaurus US Equity Ex-Dividend Fund (ticker: XDIV).
The Metaurus Cumulative Dividends Fund 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 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.
About Metaurus Advisors
Metaurus Advisors is an asset management company focused on innovation and dedicated to providing unique financial solutions to address today’s most pressing investment problems. Metaurus seeks to alter the investment landscape by providing the market with thoughtfully built financial tools, not generic products. Metaurus principals pioneered the Structured Notes platforms at Merrill Lynch (1990-1997), Morgan Stanley (1995-2005) and Wells Fargo (2005-2018). To learn more please visit www.metaurus.com or call Rick Silva at 201-683-7979.
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Additional disclosures can be found at www.metaurus.com/disclosures
Funds distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Metaurus Advisors LLC or any of its affiliates. This material is intended for U.S. investors only.
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