On this episode of “What Makes That Ticker Tick,” VettaFi CMO Jon Fee caught up with Jane Edmondson, co-founder and CEO of EQM Indexes and the new head of thematic strategy at VettaFi, to discuss the EQM High Income Pass-Through Securities Index (HIPSTR).
Fee and Edmondson explored a number of different topics, including the index’s objectives, traits that separate this product from others, and the index’s rebalancing strategy. Fee and Edmondson also touched on how HIPSTR has performed year to date and in the long term. In addition, the pair breaks down how MLPs, BDCs, CEFs, and REITs work in the index.
EQM High Income Pass-Through Securities Index (HIPSTR)
0:00 Introducing the show and the index being covered.
0:25 Diving into where Edmondson is currently located.
1:05 What is the objective of the HIPSTR index?
2:20 Explanation of how the index reminds Fee of VettaFi’s Income Strategy Symposium.
2:40 What separates this index from other products in the marketplace today?
4:00 Fee’s original thoughts on HIPSTR’s index Construction.
4:35 Explanation of the indexes “25, 25, 25, 25 buckets.”
5:45 The index’s rebalancing strategy.
6:25 How has the index performed YTD and in the long term?
7:00 Explanation of how each of the index’s categories tends to perform well in different market environments.
8:00 Should investors think about the performance of the dividend or look at the index’s traditional performance?
9:00 Discussion on some of the index’s current constituents.
10:00 How do BDCs work in this index?
10:55 How do closed-end funds and REITs work in HIPSTR?
11:45 Final thoughts
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