Core Insights - Roundhill Investments has launched a new ETF called "S&P 500 No Dividend Target ETF" (XDIV), set to debut on July 10, aiming to track the S&P 500 index while avoiding dividend payouts and associated tax burdens [1][4] - The ETF is designed for tax-conscious investors who seek exposure to the S&P 500 without incurring dividend tax liabilities, filling a gap in the market for such products [4][5] Group 1 - Roundhill is known for innovative ETFs, having previously launched the award-winning Magnificant Seven ETF (MAGS) and the "China Dragon" ETF (DRAG) [4] - The strategy of XDIV involves selling positions in S&P 500 ETFs before dividend dates to prevent investors from receiving dividends, thus avoiding ordinary income tax [4] - The ETF will invest in other S&P 500 ETFs, such as Vanguard's VOO, and will switch to non-dividend paying funds close to the ex-dividend date [4] Group 2 - XDIV is part of a growing trend of "tax-optimized" products in the market, with other firms like LionShares and F/m Investments also launching similar ETFs [5] - Experts in the ETF industry view the strategy as a smart move, with the ability to avoid capital gains tax becoming a key selling point for ETFs [5]