GraniteShares HIPS US High Income ETF (HIPS)

Overview

The GraniteShares HIPS US High Income ETF (HIPS) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx HIPS Index. The fund seeks to provide high current income by investing in a diversified portfolio of high-yielding, primarily US-based, infrastructure and real estate securities.

Reputation and Reliability

GraniteShares is a relatively smaller ETF provider, but is known for offering innovative and niche products. Its reliability is tied to its commitment to transparency and following the stated investment strategy.

Management Expertise

GraniteShares' management team has experience in developing and managing specialized ETFs. Their expertise focuses on creating unique investment solutions.

Goal

To provide high current income.

Investment Approach and Strategy

Strategy: The fund tracks the Indxx HIPS Index, which is designed to measure the performance of high income US-based securities.

Composition The ETF holds a portfolio of infrastructure and real estate securities, including master limited partnerships (MLPs), real estate investment trusts (REITs), and utilities.

Market Share: HIPS has a moderate market share within the high-income ETF landscape.

Total Net Assets (AUM): 61650000

Key Competitors

• InfraCap MLP ETF (AMZA)
• ALPS Alerian MLP ETF (AMLP)
• Global X SuperDividend REIT ETF (SRET)

Competitive Landscape

The high-income ETF market is competitive with several established players. HIPS competes by offering a diversified approach to high-yielding assets, which differentiates it from pure MLP or REIT focused funds. One disadvantage is that it is smaller compared to AMZA and AMLP.

Historical Performance: The fund's performance is greatly influenced by market conditions in the real estate and infrastructure sectors. Returns are influenced by underlying yields and market volatility.

Benchmark Comparison: The ETF's performance should be compared to the Indxx HIPS Index, which serves as its benchmark. Differences in performance may arise from fees and tracking errors.

Expense Ratio: 0.85

Average Trading Volume

The ETF's average trading volume indicates moderate liquidity, which may vary depending on market conditions.

Bid-Ask Spread

The bid-ask spread reflects the cost of trading the ETF and is generally tight, suggesting good liquidity.

Market Environment Factors

Economic indicators such as interest rates, inflation, and infrastructure spending policies influence the ETF. Performance can also be affected by factors specific to the REIT and MLP sectors.

Growth Trajectory

The ETF's growth depends on the continued demand for high-income investments and the performance of its underlying assets. Changes in strategy and holdings reflect market conditions and investment opportunities.

Competitive Edge

HIPS's competitive advantage lies in its diversified approach to high-income securities across multiple sectors. Its selection of REITs, MLPs, and other yield-generating assets, all within one fund, allows investors access to multiple markets in a consolidated format. HIPS benefits from the relative stability of its allocations, allowing for investors to have confidence in its dividend distributions. HIPSu2019 focus on yield provides appeal to investors seeking strong cash flow through the investment.

Volatility

The fund's volatility is affected by the volatility of its underlying assets, which include potentially volatile sectors like real estate and energy. Performance is also exposed to interest rate risk and market risk.

Market Risk

The fund is exposed to market risk, as changes in market conditions can impact the value of its holdings. Sector-specific risks, such as changes in regulations affecting MLPs or REITs, are also relevant.

Ideal Investor Profile

The ideal investor is one seeking high current income and is willing to accept moderate risk. HIPS is suitable for investors looking to diversify their income streams.

Market Risk

HIPS is suitable for long-term investors seeking income, as well as active traders seeking to capitalize on short-term market fluctuations.

GraniteShares HIPS US High Income ETF (HIPS) aims to provide high current income by investing in a diversified portfolio of high-yielding, primarily US-based, infrastructure and real estate securities. The fund's performance is influenced by economic factors and the performance of its underlying assets, like real estate and energy. With a moderate risk profile, it attracts investors seeking high income and those who wish to diversify their income streams. While it has a relatively small AUM, the ETF's unique investment strategy offers a competitive edge.

Data Sources:

• GraniteShares Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.