This US Fairness ETF Gained’t Pay You Dividends—On Goal – Advisor Managed Portfolios LionShares U.S. Fairness Whole Return ETF (ARCA:TOT)

LionShares launched a brand new exchange-traded fund on Tuesday to deal with an ever-present investor ache level: tax drag on dividends.

Value-sensitive buyers are additionally thought-about within the pitch. The LionShares U.S. Fairness Whole Return ETF TOT has a web expense ratio of 0.0749% following a contractual price waiver (by September 2026). It goals to beat many actively managed rivals whereas fixing an issue most index funds don’t handle head-on.

Conventional fairness ETFs distribute dividends to shareholders, producing reinvestment drag and taxable earnings within the course of. TOT is totally different. It’s designed to retain these money flows throughout the fund.

By proactively lowering distributions, the ETF permits returns to compound unimpeded and converts what is usually a taxable drip right into a clean development engine.

Additionally Learn: Franklin Templeton Unveils MULT: A Bond ETF Constructed To Discover Earnings The place Others Miss It

LionShares CEO Sofia Massie mentioned most buyers need to reinvest dividends on a well timed foundation and acquire publicity to the market’s whole return.

“Usually neglected, tax drag can quietly erode buyers’ efficiency compounding for years. We appeared to remove this impediment on the basis of the ETF’s design by eradicating distributions,” she mentioned. “Our purpose with this innovation is to supply buyers with a extra environment friendly product to realize their long-term investing targets and provides again management over the timing of taxable earnings.”

TOT invests primarily in broad U.S. fairness market-tracking ETFs. It additionally has the discretion to make use of futures or choices if doing so enhances effectivity or liquidity.

TOT’s launch underscores a development: addressing structural inefficiencies embedded within the outdated means of designing funds. By stealthily eliminating tax drag, TOT can present long-term buyers with a extra environment friendly base on which to compound wealth.

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