Pacer ETFs has expanded its Dividend Multiplier Series with the launch of a new fund based on the Nasdaq 100.

QSIX offers six times the dividend yield of the Nasdaq 100, providing a powerful income solution with growth potential.

The Pacer Metaurus Nasdaq 100 Dividend Multiplier 600 ETF (QSIX US) has been listed on Nasdaq with an expense ratio of 0.60%.

QSIX is designed to provide six times the dividend yield of the Nasdaq 100 (which stood at 0.81% as of the market close on 28 September), while maintaining approximately 90% exposure to the index’s total performance.

Developed in partnership with Metaurus Advisors, QSIX offers an innovative approach for income-focused investors, particularly those seeking yield while maintaining exposure to the long-term capital appreciation potential of the Nasdaq 100, a globally recognized growth index.

Notably, QSIX achieves its enhanced yield without relying on leverage or options. Instead, it separates the Nasdaq 100’s returns into two distinct components: dividend cash flow and price appreciation/depreciation. This strategy allows QSIX to reduce its equity exposure to the index and reallocate capital into cash-like instruments as collateral, effectively enhancing dividend participation.

Pacer’s first dividend multiplier ETF, the Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (QDPL US), launched in 2021, seeks to provide four times the dividend yield of the S&P 500 (1.32% as of 28 September), while maintaining roughly 89% exposure to the index. Since its debut, QDPL has accumulated $500 million in assets and comes with an expense ratio of 0.60%.

Joe Thomson, Founder and President of Pacer ETFs, highlighted the success of the firm’s initial dividend multiplier ETF: “We’ve seen increasing demand for QDPL, our dividend multiplier ETF that aims to provide four times the dividend of the S&P 500, and we’ve been really pleased with our partnership with Metaurus. With QSIX, we see an equally compelling opportunity to deliver investors and advisors an innovative way to generate income while maintaining equity exposure to a core index.”