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Pacer ETFs
 
 
 
 
Pacer Metaurus Dividend Multiplier ETFs

Need more from your core allocation? 

The Dividend Multiplier Series has you covered.

Our Dividend Multiplier Series aims to enhance investors’ growth and income by offering high cash flow and broad market exposure.

The Fund Family

Funds that aim to enhance investors’ growth and income by offering high cash flow and broad market exposure.

S&P 500 Exposure View Fund

QDPL

Pacer Metaurus US Large Cap Dividend Multiplier® 400 ETF

QDPL.IV

Benchmark Index

S&P 500® Index

Inception Date

7/12/21

Total Expenses

0.60%

CUSIP

69374H436

Nasdaq-100 Exposure View Fund

QSIX

Pacer Metaurus Nasdaq-100 Dividend Multiplier® 600 ETF

QSIX.IV

Benchmark Index

Nasdaq-100® Index

Inception Date

9/23/24

Total Expenses

0.60%

CUSIP

69374H287

 

The Pacer Metaurus Dividend Multiplier Series

QDPL and QSIX are passive ETFs that seek Growth & Income by providing exposure to approximately “quadruple” (~400%) or “sextuple” (~600%) of the ordinary dividend yield of the S&P 500® Index or Nasdaq-100® Index in exchange for reduced, but uncapped, exposure to the price appreciation/depreciation of their respective indexes. 

QDPL S&P 500® Index
~400%

Ordinary dividend yield exposure

QSIX Nasdaq-100® Index
~600%

Ordinary dividend yield exposure

Investment Case

The Investment Case for Dividend Multipliers

The strategy seeks to provide:

Hover over each card for more information.

 

01

High Cash Flow

It seeks to offer investors a high level of distributable cash flow (targeting a multiple of the S&P 500® ordinary dividend yield or Nasdaq-100® ordinary dividend yield), while still preserving the potential for long-term capital growth.

02

Uncapped Long-Term Growth in a Passive Index

By investing incremental dollars directly in the Dividend Component of the aggregate index, the strategy seeks to provide diversified equity exposure with higher distributable cash flow, lower market sensitivity, lower expected volatility, and a higher expected Sharpe Ratio (risk-adjusted return) than the Benchmark.

03

Dividends as an Asset Class

Academic research¹ from Wharton has shown that adding dividend exposure to diversified equity and fixed income portfolios can improve the risk profile and enhance overall return potential.

 

(¹)The term structure of returns: “Facts and theory,” Van Binsbergen and Koijen, Journal of Financial Economics, 2017.

04

Hedge Against Inflation

Dividend growth and inflation are highly correlated, and historically, dividend growth has been strongest during periods of high inflation. Since 1970, dividend growth has averaged 6.0% per annum versus 4.0% per annum for inflation.²

 

(²)Bloomberg as of 12/31/25.

05

Potential Tax Advantage

The distributions are expected predominately to be treated as a tax-free return-of-basis, with the balance expected to be a combination of qualified dividends and possibly a small component of capital gain/loss.

+

Monthly Distributions

Dividend distributions are paid monthly, creating a consistent distribution schedule for investors seeking income-oriented equity exposure.

 

The Strategy

The Dividend Multiplier Strategy

1. Separates each index into two components:

        (1) Dividend Component comprised of the next three years of expected ordinary dividends, and

        (2) Price Component representing exposure to the S&P 500 or the Nasdaq-100.

2. Determines the relative weightings of the two components, the Dividend Component and the Price Component, aiming to deliver a multiple of the ordinary dividend yield in exchange for reduced exposure to the price return of the Index.

Index Exposure: Benchmark Index

Unbundle Index

Separate the benchmark index into its two return components:

- Dividend Cash Flow

- Price Appreciation / Depreciation

1x Dividends
100%
Benchmark
Index

Adjust Equity Price Exposure

Reduce equity exposure to the Benchmark Index and use the remaining percentage to purchase collateral for 4x (or more) greater participation in dividends.

1x Dividends
Cash/Treasuries utilized to purchase additional dividend payments.
Reduced
Exposure to
Benchmark
Index

Increase Dividend Exposure

Recombine the components in new ratios to produce:

- 4x (or more) Dividend Yield

- Reduced Exposure to the Benchmark Index

4x Dividends
Up
to
6x Dividends
Reduced
Exposure to
Benchmark
Index

Strategy Differentiation

How the Dividend Multiplier Strategy Differs from Other Income Strategies

1.

No Active Stock/Sector Selection

Traditionally, investors have relied upon picking stocks to actively identify individual stocks that pay high or stable dividends or chase yield by overweighting certain sectors. The Dividend Multiplier ETFs are passive, index-based strategies that do not pick stocks or have sector concentrations. The strategy also seeks to mitigate the risk of missing new/less-seasoned dividend paying stocks or missing large cap growth stocks that may not pay a dividend at all.

2.

Uncapped Growth

Covered call strategies generate income through selling options but cap a fund’s upside potential. The Dividend Multiplier Strategy does not use options in any form and can provide unlimited upside potential at a reduced participation rate to the price return of the S&P 500® Index or Nasdaq-100® Index.

3.

No Interest Rate or Bond-Related Risk

Fixed income funds can provide cash flow but are subject to interest rate- and inflation-risk and could be subject to credit and liquidity risk in some cases. Historically, dividends tend to rise with higher interest rates. The strategy’s underlying securities are all exchange traded and liquid.

4.

No Stock Picking, Overwighting Sectors or Leverage

The strategy seeks to provide diversified, S&P 500® or Nasdaq 100® Index exposure – it does not pick stocks or overweight sectors, nor does it use options or leverage. The strategy utilizes only exchange-traded instruments.

 

Why does the Dividend Multiplier Strategy target the first three years of dividends?

Research indicates that, historically, investing in the first three years of expected dividends has offered the best value, liquidity and scalability.