"Wall Street Innovates with S&P 500 'No Dividend' ETF to Cut Taxes and Boost Value"

Wall Street is embracing a new tax dodge strategy with the launch of the S&P 500 No Dividend Target ETF, designed to minimize taxes by avoiding dividend payouts. This move comes as asset managers seek to give investors more control over their tax bills through innovative fund structures.

The XDIV ETF will strategically sell holdings before dividend dates to reduce taxable events for investors, charging a 0.0849% fee. This appeals to investors who want S&P 500 exposure without the downside of distributions, or high earners looking to limit taxable income in brokerage accounts.

By skipping dividends, the ETF aims to avoid the typical stock price drop after payouts, maintaining value for investors. This strategy aligns with a growing trend of tax-optimized offerings, including other ETFs that convert portfolios to minimize taxable events and reduce distributions.

The rise of tax-optimized ETFs reflects a shift in the industry, with issuers leveraging the ability to sidestep capital gains as a key selling point. More products following this trend are expected to enter the market soon, offering investors greater control over their tax liabilities and investment strategies.

Read more at Yahoo Finance: Wall Street Builds S&P 500 ‘No Dividend’ Fund in New Tax Dodge