These funds aim to multiply the market's dividend yield. How they stack up to competitors

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Investment Strategy News

Markets,Schwab U.S. Dividend Equity ETF,Vanguard Dividend Appreciation Index Fund ETF Shar

Pacer launched a new exchange traded fund on Tuesday designed to deliver distributions six times greater than the dividend yield on the Nasdaq-100 Index.

The competition among ETF issuers to find a new way to squeeze the most income out of stock portfolios expanded again on Tuesday, with a new fund from Pacer that aims to deliver amplified dividends. The firm launched the Pacer Metaurus Nasdaq-100 Dividend Multiplier 600 ETF , a sister fund to the US Large Cap Dividend Multiplier 400 ETF that has grown to more than $500 million in assets since its launch in 2021.

Over the past three years, QDPL has outperformed several popular dividend-focused funds, including the ProShares S & P 500 Dividend Aristocrats ETF and Schwab US Dividend Equity ETF on a total return basis, according to FactSet. However, it has underperformed the Vanguard Dividend Appreciation ETF . Dividend futures are based on indexes that track the total dividends paid over the course of the year for a group of stocks, designated as "points" by S & P Dow Jones Indices.

 

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