Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF aims to provide a dividend 4x larger than the S&P 500, targeting income-focused investors. QDPL achieves its high yield via S&P 500 dividend futures, not options or leverage, maintaining about 90% equity exposure and 10% Treasuries as collateral. The predictability of dividend income makes it appealing from a forward-looking perspective, in my opinion, both compared to the bond segment and to the category of equity buy-write ETFs.
The Pacer Metaurus US Large Cap Dividend Multiplier ETF amplifies S&P 500 dividends, targeting a 4–6% yield by leveraging dividend futures. QDPL has sacrificed about 7% of the S&P 500 total return over the last 3 years for a 3–4% higher, tax-efficient yield, distributing ~5% annually. Unlike covered call ETFs, QDPL maintains most equity upside while providing higher income than traditional dividend funds, with significant return-of-capital tax benefits.
The Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF ( NYSEARCA:QDPL ) takes an unconventional approach to dividend income.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 6,177 | $258,231.27 | $283,030.14 | $24,798.87 | 9.6% |
| TMB Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 800 | $33,636 | $36,656 | $3,020 | 8.98% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 73,478 | $2.89M | $3.36M | $472,651.23 | 16.38% |
| JE Jean Elzayek Householder Group Estate & Retirement Specialist LLC | 12,795 | $448,250.25 | $584,475.6 | $136,225.35 | 30.39% |
| KMT Kirk M. Tokheim Ameritas Advisory Services LLC | 10,613 | $413,370.65 | $486,181.53 | $72,810.88 | 17.61% |
| ARCA Exchange | US Country |
The company focuses on a unique investment strategy that combines the growth potential of the S&P 500 Index with a dividend-based income approach through futures contracts. This dual strategy aims to cater to those investors seeking exposure to large cap U.S. equities while also desiring a steady income stream from dividends. The firm places a significant portion of its net assets, at least 80%, in large cap equity securities and derivatives thereof, emphasizing its commitment to the U.S. market. It is noteworthy that the fund maintains a non-diversified status, potentially leading to higher volatility due to its concentrated investment approach.
This component offers investors exposure to the S&P 500 Index, which is comprised of 500 leading U.S. companies representing approximately 70% of the total U.S. stock market's value. It is a key part of the company's strategy, aiming to provide growth through capital appreciation, reflecting the performance of major U.S. equities.
Distinctively focusing on the dividend aspect, this component involves long positions in annual futures contracts. These contracts offer exposure to ordinary dividends paid by the companies within the S&P 500. This innovative approach allows investors to gain income from dividends, adding a steady income stream alongside the potential capital gains from equity investments.