GraniteShares seeks to establish benchmark for high income pass-through securities with acquisition. GraniteShares Acquires HIPS ETF
GraniteShares, a new kind of ETF company, has acquired the HIPS US High Income ETF (NYSE Arca: HIPS), just weeks before the fund hits the crucial three-year trading mark.
HIPS is a high income-focused fund that invests in securities structured as pass-through entities1, including master-limited partnerships (MLPs), real estate investment trusts, closed-end funds and business development companies.
The strategy seeks to deliver high yield to investors without concentration risk in any one sector.
GraniteShares has lowered the management fee for HIPS to 70 basis points2. Like most of its sister products on the GraniteShares platform, there is no K-1 associated with HIPS.
“HIPS is an important acquisition for the firm as it seeks to serve as the benchmark for high income pass-through securities and has historically been one of the highest yielding ETFs in the market,” said GraniteShares CEO and ETF entrepreneur Will Rhind. “This fund looks to mitigate sector risk associated with portfolio overconcentration, something often found with MLP investments. With its diversity, liquidity and yield, HIPS furthers our mission of providing good ideas to investors in the form of ETFs.”
About GraniteShares
GraniteShares is an independent, fully funded ETF company headquartered in New York City. The firm seeks to launch disruptive ETFs. GraniteShares’ focus is on products that bring the excitement back to investing, using new ideas, innovative structures and low cost. Will Rhind, Founder and CEO, is an established ETF entrepreneur with more than 16 years of experience in the industry.