A More Tax-Efficient Dividend ETF

Many investors are drawn to dividend paying stocks for their regular income stream.

However, a significant, often overlooked cost is something called tax drag.

Well, the new ETF from Lion Shares aims to reduce the frictional cost of taxes when it comes to dividends.

And here to explain more is Sophia Massie, CEO at Lion Shares.

Sophia, thank you for joining us. >> Thanks so much for having me. >> Congratulations on the launch of Lion Shares US equity total return ETF.

And the ticker there is to t uh tot.

The fund is actively managed and it aims to reduce the tax drag of dividend payments which of course everyone is happy about.

Um why no dividends and what is tot's goal for generating returns?

Exactly.

So tot strategy it's right there in the ticker.

We track the total return of the total US stock market.

And what that total return goal means, instead of paying dividends out to shareholders, we actually keep those dividends inside of the ETF where they remain invested and continue compounding.

The great benefit of this is that it can actually uh improve after tax returns.

And by keeping the funds inside, keeping those returns inside of the ETF, investors no longer need to reinvest their dividends and overall just creating a much more efficient