Latest news with #US-regulated
Yahoo
07-07-2025
- Business
- Yahoo
Wall Street Builds S&P 500 ‘No Dividend' Fund in New Tax Dodge
(Bloomberg) -- Wall Street's latest tax dodge doesn't hide in the Cayman Islands or rely on complex derivatives. It's engineered to turn a publicly traded fund into a tax-minimizing machine that hums quietly on autopilot. Are Tourists Ruining Europe? How Locals Are Pushing Back Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Massachusetts to Follow NYC in Making Landlords Pay Broker Fees In California, Pro-Housing 'Abundance' Fans Rewrite an Environmental Landmark While dividends have long been a defining feature of stock investing — a sign of corporate discipline and investor reward — Roundhill Investments plans to launch the S&P 500 No Dividend Target exchange-traded fund on July 10 with the ticker XDIV. Its ambition is simple but strategic: track the performance of the famous benchmark while dodging its payouts. The fund will sell holdings just before their dividend dates — steering income away from ETF shareholders and, in the process, away from their tax bills. As stock benchmarks have climbed in recent years and tax bills have grown alongside them, asset managers are building products that give investors more control over when — and whether — they owe taxes. These rely on sophisticated mechanisms to reduce taxable events, essentially transforming the fund structure into a programmable tax-sensitive tool. These strategies are executed through US-regulated ETFs that trade on public exchanges, offering investors easy access and the kind of fiscal flexibility once reserved for private wealth clients. It's 'for people who are tax-aware — intended for people who want to have S&P 500 exposure without the downside of distributions,' said Dave Mazza, chief executive officer at Roundhill. 'There hasn't been a product in the market to meet the needs of investors for this.' While most ETFs already sidestep capital gains by using a mechanism known as in-kind redemptions, XDIV's strategy takes aim at a different category of tax exposure: ordinary income. The fund, which will charge a 0.0849% fee at the start, will invest in other S&P 500 ETFs, such as Vanguard's VOO, but will exit positions just before ex-dividend dates. It will then rotate from one such index fund into another that isn't about to pay a distribution. That could appeal to clients who don't reinvest payouts consistently — which can be a drag on performance — or high earners seeking to limit taxable income in brokerage accounts. 'There are certain investors who don't want taxable income — there's institutional investors who only want the total return for an investment,' Mazza said. 'Then, there's tax-aware mom-and-pop investors who are focused on long-term compounding, but they don't want to receive current income because that means their total income — even if it's modest compared to what they may be making from their compensation — is still going to be taxable.' Skipping the dividend isn't an own goal. When a company pays out cash to shareholders, its stock typically falls by the same amount, so by selling just before that moment, the ETF gives up the payout but also sidesteps the price dip. In other words, the value of the trade should net out, the thinking goes. What changes is how — and when — investors owe taxes. XDIV joins a growing wave of tax-optimized offerings. Others, like the Burney US Factor Rotation ETF, convert entire portfolios into the wrapper without triggering a taxable event. Cambria's Tax Aware ETF, meanwhile, seeded its portfolio with appreciated stocks, allowing investors to swap exposures without formally realizing gains. And more products that hew to this idea could come to market soon. A firm named LionShares LLC in mid-June filed for an ETF that would invest in other ETFs tracking the large-cap US equity market, but would at the same time look to 'minimize' distributions, according to its paperwork. Earlier, F/m Investments, a Washington DC-based asset manager with a growing ETF lineup, filed for a number of new bond products that would swap between different holdings in order to dodge dividend payouts, something that industry veteran Dave Nadig dubbed 'clever.' 'The ability of ETFs to sidestep capital gains isn't just a technical quirk anymore — it's a core selling point, and issuers are leaning into this edge,' said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. --With assistance from Justina Lee. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too For Brazil's Criminals, Coffee Beans Are the Target Sperm Freezing Is a New Hot Market for Startups Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate China's Homegrown Jewelry Superstar ©2025 Bloomberg L.P. Sign in to access your portfolio
India Today
26-06-2025
- Business
- India Today
Buying a home or property with cryptocurrency? New US plan could make it possible soon
In a move that could reshape how Americans buy homes, the US government has directed major mortgage players to begin preparing plans to accept cryptocurrency as an asset when evaluating mortgage applications, according to a report by CNN Business. William 'Bill' Pulte, who oversees the Federal Housing Finance Agency (FHFA), announced the decision in a social media post on Wednesday. 'After significant studying, and in keeping with President Trump's vision to make the United States the crypto capital of the world, today I ordered the Great Fannie Mae and Freddie Mac to prepare their businesses to count cryptocurrency as an asset for a mortgage,' he marks a sharp policy shift in the real estate market in the US. Until now, homebuyers couldn't include cryptocurrency in their financial profiles unless they sold it and transferred the money into a traditional bank account. Under the previous guidance issued during the Biden administration, crypto was considered too volatile to be included in mortgage calculations. The new plan, however, recognises crypto as an emerging asset class. According to the directive, borrowers will no longer be required to liquidate their digital assets to qualify for home loans. Instead, they can list eligible crypto holdings alongside stocks or bonds in their application – provided those holdings are kept on US-regulated, centralised That distinction is key. Crypto assets stored in private wallets or offshore exchanges won't qualify, according to the FHFA change is a potential game-changer for self-employed individuals or those with irregular income. In traditional lending, borrowers often need to show steady cash reserves. For crypto holders who lack traditional savings, their digital assets could now serve as the buffer needed to get the move doesn't come without caution. Pulte reportedly instructed both Fannie Mae and Freddie Mac to consider risk-mitigation strategies. That means lenders will likely apply substantial discounts to the stated value of crypto holdings and require additional documentation – such as exchange records and proof of stability over process will take some time to fully roll out. Fannie and Freddie must first draw up proposals, get them approved by their boards, and submit them to the FHFA for final review. Only after these steps will the new crypto mortgage guidelines be directive also comes amid broader plans to return Fannie and Freddie to private ownership after 17 years of federal control. That plan, first hinted at by President Donald Trump, has raised concerns among some experts who worry it could increase borrowing costs without a government safety net in place. Still, the inclusion of crypto in mortgage consideration reflects how quickly digital finance is entering the mainstream. The directive itself describes cryptocurrency as 'an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets.'- Ends
Straits Times
25-06-2025
- Business
- Straits Times
Trump administration moves to count crypto in federal housing loan assessments
US regulator has ordered federal housing giants to consider cryptocurrency as an asset for single-family mortgage loan risk assessments. PHOTO: REUTERS NEW YORK - The US regulator overseeing Fannie Mae and Freddie Mac on June 25 ordered the federal housing giants to consider cryptocurrency as an asset for single-family mortgage loan risk assessments, a move that could potentially open the door to borrowers using crypto investments to qualify for home loans. William Pulte, the director of the Federal Housing Finance Agency (FHFA), said in a social media post that he had ordered Fannie and Freddie to 'prepare their businesses to count cryptocurrency as an asset for mortgage,' which he said would be in line with President Donald Trump's vision of making the United States 'the crypto capital of the world.' The FHFA oversees Fannie Mae and Freddie Mac, which have operated under US government control since 2008 after suffering heavy losses during the subprime mortgage crisis. They guarantee over half of the nation's mortgages. Cryptocurrencies are known for being highly volatile and are often subject to wild price swings, sometimes for no clear reason. In February, Bitcoin – the largest cryptocurrency – suffered its biggest weekly fall in two years, dropping 16 per cent, although it has since recovered. Mr Trump has sought to overhaul US cryptocurrency policy after courting cash from the industry on the campaign trail. He has appointed industry-friendly regulators and has hosted industry leaders at the White House. Cryptocurrencies have reacted favourably, with Bitcoin reaching all-time highs this year. In a directive signed on June 25, Mr Pulte said that considering additional borrower assets – such as cryptocurrencies – could enable Fannie and Freddie to assess the full financial picture of a borrower and could 'facilitate sustainable homeownership to creditworthy borrowers.' Mr Pulte's order did not specify which cryptocurrencies Fannie and Freddie should consider. Only digital assets held on US-regulated, centralised exchanges will qualify under the new guidance. Fannie and Freddie must design safeguards to account for crypto's volatility and submit their plans to the FHFA. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Associated Press
12-06-2025
- Business
- Associated Press
NXP Semiconductors Announces Quarterly Dividend
EINDHOVEN, The Netherlands, June 12, 2025 (GLOBE NEWSWIRE) -- As part of its ongoing capital return program, NXP Semiconductors N.V. (NASDAQ: NXPI) today announced that its board of directors has approved the payment of an interim dividend. The actions are based on the continued and significant strength of the NXP capital structure, and the board's confidence in the company's ability to drive long-term growth and strong cash flow. The board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the second quarter of 2025. The interim dividend will be paid in cash on July 9, 2025, to shareholders of record as of June 25, 2025. Taxation – Cash Dividends Cash dividends will be subject to the deduction of Dutch dividend withholding tax at the rate of 15 percent, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. If you are uncertain as to the tax treatment of any dividends, consult your tax advisor. About NXP Semiconductors NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's 'Brighter Together' approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.61 billion in 2024. Find out more at Forward-looking Statements This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP's products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP's established supply chains; the impact of government actions and regulations, including restrictions on the export of US-regulated products and technology; increasing and evolving cybersecurity threats and privacy risks, including theft of sensitive or confidential data; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers to meet demand; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP's relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers' equipment and products; the ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; the ability to maintain good relationships with NXP's suppliers; and a change in tax laws could have an effect on our estimated effective tax rate. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, or from the SEC website, For further information, please contact: NXP-Corp
Yahoo
27-05-2025
- Business
- Yahoo
Circle IPO puts spotlight on regulated stablecoins
Circle Internet Group ( is planning to go public, aiming to raising $624 million in an initial public offering. The move is putting stablecoins back in the spotlight as lawmakers move forward on regulation. IDX Advisors chief investment officer Ben McMillan joins Market Domination to break down what sets US-regulated stablecoins like Circle's USDC apart from others. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
