SAN DIEGO--(BUSINESS WIRE)--San Diego-based index developer EQM Indexes announces the latest in its suite of Income Indexes, the EQM High Income Pass-Through Securities Index with the catchy index ticker “HIPSTR”. No, the index does not hold companies that make kombucha, avocado toast and premium tequila, but rather high income yielding securities that must “pass-through” at least 90% of their taxable income to shareholders.
The index equally weights 40 holdings among the following four categories of alternative income:
- Energy Master Limited Partnerships (MLPs)
- Business Development Companies (BDCs)
- Closed End Funds (CEFs)
- Real Estate Investment Trusts (REITs).
“We are enthusiastic about adding another offering to our Income Suite of Indexes that can yield investors more than 10% annually to help keep up with inflation and offer alternative sources of income, uncorrelated with bonds,” says EQM Indexes CEO, Jane Edmondson.
EQM Indexes is also the firm behind the development of the EQM Natural Resource Dividend Income Index (NDIVITR), which is designed to generate income from dividends, special dividends, and share repurchases derived from global equity positions in natural resource and commodity-related industries. It is also currently yielding above 10%.
The HIPSTR Index has been licensed by GraniteShares for its HIPS US High Income ETF (HIPS).
“We are very happy to partner with EQM Indexes by licensing the High Income Pass-Through Securities Index (HIPSTR). Stability of income is a huge priority for investors in today’s volatile market environment. With this partnership, GraniteShares is reaffirming its commitment to helping investors meet their income goals,” says GraniteShares Founder and CEO William Rhind.
A White Paper, detailing the Investment Case for using alternative income using High Income Pass-Through Securities (HIPS) in a portfolio can be accessed for free here.
EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 30 years in the investment industry, our index design expertise spans a wide range of asset classes and financial instruments. We partner with issuers and work jointly with other index firms to provide benchmarks for Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and other similar products. EQM Indexes LLC also assists firms on a fee basis to design and implement their index ideas.