This distinct income producer that focuses on publicly traded companies that pass through their profit to shareholders, also includes both Mortgage and Equity Real Estate Investment Trusts (REIT's), Business Development Companies (BDC's), Closed End Funds (CEF's) and Royalty Trusts. Master Shares developed the High Income Pass Through Securities Index with S&P Dow Jones which the HIPS ETF tracks. Through the end of June, the price change of the S&P 500 was up 2.70% while the HIPS Index finished up 5.90%. Assuming dividends are reinvested, year to date the S&P is up 3.80% while the HIPS Index was up 10.40% to close the first half of 2016.
The diversification of this strategy at both the individual security and asset class level, along with limiting the size of any one position, has historically increased the stability of the income from this portfolio. The NAV can and will fluctuate given market conditions over various time periods. Ideally this is a portfolio for long term investors seeking higher yield.
For Registered Investment Professional Use Only.
Must be preceded or accompanied by a current prospectus, which can be found here.
Investing involves risk; Principal loss is possible. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer term debt securities. Investments in lower rated and non-rated securities present a greater risk of loss to principal and interest than higher rated securities. Investments in foreign securities involves greater volatility and political, economic, and currency risks and differences in accounting methods. Investments in smaller companies involve additional risks, such as limited liquidity and greater volatility. MLPs are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates. Investments in asset-backed and mortgage-backed securities include additional risks including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. A REIT's share price may decline because of adverse developments affecting the real estate industry. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.
Diversification does not assure a profit or protect against loss in a declining market.
Quasar Distributors, LLC, Distributor.
Contact: James Copell, 201-257-8945, firstname.lastname@example.org
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SOURCE Master Income ETF