Wall Street Builds S&P 500 'No Dividend' Fund in New Tax Dodge

Wall Street's latest tax dodge doesn't hide in the Cayman Islands or rely on complex derivatives.

- Bloomberg

It's engineered to turn a publicly traded fund into a tax-minimizing machine that hums quietly on autopilot.

While dividends have long been a defining feature of stock investing—a sign of corporate discipline and investor reward—Roundhill Investments plans to launch the S&P 500 No Dividend Target exchange-traded fund on July 10 with the ticker XDIV. Its ambition is simple but strategic: track the performance of the famous benchmark while dodging its payouts. The fund will sell holdings just before their dividend dates—steering income away from ETF shareholders and, in the process, away from their tax bills.