GraniteShares HIPS US High Income ETF [HIPS] Stock Forecast

GraniteShares HIPS US High Income ETF holds an equal weight portfolio in CEFs, MLPs, REITs, and BDCs. The change in underlying index last month was not a major one.

High conviction is what it takes to build and launch the best ETFs at GraniteShares. And that's a solution for disappointing 60/40 portfolios.

HIPS is a high-yield ETF with a portfolio diversified in CEFs, MLPs, mortgage REITs, and BDCs. The yield is very attractive, but price history shows a steep capital decay.

A reader and subscriber asked for my thoughts on HIPS. HIPS is a diversified multi-asset class index ETF, offering investors a strong 8.0% dividend yield.

Investors can always use more income, and there exist several ETFs that are paying out over 7% in annual dividend yields. Dividend yield is a measure of how much of security's value is returned to shareholders in the form of dividends.

With CDs earning below inflation (and not even close), investors in need of income are searching for high quality investments to meet that need. Not sure HIPS meets that goal. Smart income investors do not tunnel-vision solely on yield. They are also concerned with the investment's Total Return. VCSH, a short-term Corporate Bond ETF betters HIPS on that measure.

Will Rhind discusses the outlook for gold, silver and active management in the ETF space.

It's no secret that finding income in today's economic and market environment is challenging. It was difficult to generate yield even a year ago, but the coronavirus pandemic has only exacerbated matters by inducing rock-bottom interest rates, widespread dividend cuts and salary reductions nationwide.

In an "income-starved environment," high-income strategies may be good alternatives for investors, says GraniteShares founder and CEO Will Rhind.

With the challenges of chasing yield, it's good to look at some funds focusing on high yield. CEO and Founder of Granitshares, Will Rhind, spoke on “ETF Edge,” with ETF Trends' CIO and Director of Research, Dave Nadig, and CNBC host Eric Chemi, about the risks and rewards of the GraniteShares HIPS US High Income ETF [.