GraniteShares HIPS ETF underperforms peers, raising concerns over sustainability and liquidity.
The GraniteShares HIPS US High Income ETF, which invests in a mix of high-yield but volatile asset categories like CEFs, BDCs, mREITs, and MLPs, continues to underperform compared to a simple equal-weight blend of similar ETFs. Despite stable monthly payouts and recent price stability, long-term asset erosion and high return of capital raise doubts about the sustainability of its distributions. Additionally, the ETF suffers from low assets under management and weak liquidity, making it less attractive than building a custom portfolio of pass-through category ETFs or exploring active bond alternatives. Investors should consider these factors before investing in HIPS.
The GraniteShares HIPS US High Income ETF, which invests in a mix of high-yield but volatile asset categories like CEFs, BDCs, mREITs, and MLPs, continues to underperform compared to a simple equal-weight blend of similar ETFs. Despite stable monthly payouts and recent price stability, long-term asset erosion and high return of capital raise doubts about the sustainability of its distributions. Additionally, the ETF suffers from low assets under management and weak liquidity, making it less attractive than building a custom portfolio of pass-through category ETFs or exploring active bond alternatives. Investors should consider these factors before investing in HIPS.
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