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.”
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.
Disclosures
The ETFs are not investment companies registered under the Investment Company Act of 1940 and are not afforded the protections of the 1940 Act.
This material must be preceded or accompanied by a prospectus. Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by clicking on the Prospectus link or by calling 866.395.0079. Read the prospectus carefully before investing.
Nothing in this announcement should be considered a solicitation to buy or an offer to sell any shares of the portfolio in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. This communication is for informational purposes only. It is not intended to provide, and should not be interpreted as individualized investment, legal or tax advice. To obtain such advice, please consult with your investment, legal or tax professional.
Investing involves risk, including possible loss of principal.
- There is no guarantee that the funds will meet their investment objectives.
- The ETFs primarily invest in futures, which can be volatile. Even a small movement in market prices could cause large losses.
- There is no guarantee that distributions will be made.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the funds other than in large Creation Unit aggregations. Instead, investors must buy or sell shares of the funds in the secondary market with the assistance of a broker. As with all securities, buying and selling shares of the funds will result in brokerage commissions and will generate tax consequences. Brokerage commissions will reduce returns.
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.
© 2019 Metaurus Advisors LLC. All rights reserved.
For additional information on Metaurus, please visit www.metaurus.com | Twitter: @metaurusllc |LinkedIn: Metaurus Advisors LLC
