Wall Street's Income-ETF Boom Comes for Nasdaq 100 With a Twist.

WALL Street (New York, N.Y.); STANDARD & Poor's 500 Index; INVESTORS; NASDAQ 100 index; STOCK repurchasing; INCOME; REDEMPTION (Law); EXCHANGE traded funds

Pacer ETF Distributors has launched a new ETF called the Pacer Metaurus Nasdaq 100 Dividend Multiplier 600 ETF (ticker QSIX), which offers investors exposure to tech companies in the Nasdaq 100 index while providing increased income from the futures market. The ETF aims to generate six times the dividends that the Nasdaq 100 would typically pay out. Pacer's president, Sean O'Hara, believes that tech giants like Apple and Microsoft will eventually increase their dividend payments. While the Nasdaq 100 currently has a lower dividend yield compared to the S&P 500, investors are increasingly interested in income-generating strategies. However, critics warn that some of these products, including leveraged or inverse single-stock funds, can be risky and may underperform the broader market while charging higher fees. QSIX charges a 0.6% fee, slightly higher than the median rate for all ETFs. Pacer previously launched a similar ETF targeting S&P 500 stocks. [Extracted from the article]

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