At a glance
HIPS charges 1.09% a year, below the 5.38% average of the 6 funds most like it (the 4th cheapest of 7). It has $109.9M in assets, the 6th largest of that group; it paid 12.41% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.0% with distributions reinvested (S&P 500: +11.5%), 3rd of those 7 funds; over three years it returned +8.5% a year. At its worst it fell 53.0% in the 2020 crash (S&P 500: 33.7%) and 19.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months and 15 months after the lows. Its ten largest positions make up 70.1% of the fund, out of 41 in all.
The short version
GraniteShares HIPS US High Income ETF (HIPS) tracks the EQM High Income Pass-Through Securities Index. That index holds up to 40 high-yielding U.S. closed-end funds, REITs, business development companies and energy partnerships, split evenly across four groups. HIPS paid a trailing 12-month yield of 12.41% as of October 27, 2026, in monthly distributions. It costs 1.09% a year, more than MDIV's 0.75%, and it fell 53% in early 2020.
Price history
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HIPS +1.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HIPS official prospectus, to Dec 31, 2025 | — | +1.73% | — | — | — | +6.16% |
| E Q M High Income Pass Through Securities Index index, same period | — | +1.87% | — | — | — | +6.90% |
| Standard And Poors Five Hundred Total Return Index index, same period | — | +17.88% | — | — | — | +14.82% |
| HIPS price data to Oct 27, 2026 | -0.8% | +1.0% | +8.5% | +2.6% | +4.8% | +3.9% |
- Over the year to Oct 27, 2026, HIPS returned +1.0%, 3rd of 7 among similar funds.
- Its 5-year annualized return was +2.6% and its 10-year +4.8%.
- In the 2020 COVID crash it fell 53% and regained its old high 13.2 months after the low.
- Its worst full calendar year was 2022 (-13.3%); its best was 2019 (+23.9%).
- The deepest fall in its price history was 53% (Feb 20, 2020 to Mar 23, 2020), recovered by Apr 29, 2021.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -0.8% |
| 2025 | +1.2% |
| 2024 | +14.0% |
| 2023 | +16.4% |
| 2022 | -13.3% |
| 2021 | +22.9% |
| 2020 | -11.3% |
| 2019 | +23.9% |
| 2018 | -9.1% |
| 2017 | +6.5% |
| 2016 | +22.3% |
| 2015 | -15.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 52.9% over that stretch · deepest drop along the way 53%, back to its old high 13.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.6% over that stretch · deepest drop along the way 19.3%, back to its old high 14.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9900 | |
| 2025 | $1.3200 | 0.0% |
| 2024 | $1.3200 | 0.0% |
| 2023 | $1.3200 | 0.0% |
| 2022 | $1.3200 | 0.0% |
| 2021 | $1.3200 | 0.0% |
| 2020 | $1.3200 | +0.2% |
| 2019 | $1.3175 | -0.2% |
| 2018 | $1.3200 | 0.0% |
| 2017 | $1.3200 | 0.0% |
| 2016 | $1.3200 | 0.0% |
| 2015 | $1.3200 |
What's inside
As of Jun 30, 2026, the fund held 41 securities; the ten largest made up 70.12% of assets.
| Holding | Weight | |
|---|---|---|
| Treasury Bill Bonds and notes | 44.31% | |
| Two Harbors Investment Corp | 2.98% | |
| Plains All American Pipeline Lp | 2.95% | |
| Kimbell Royalty Partners Lp | 2.91% | |
| Dorchester Minerals Lp | 2.91% | |
| Delek Logistics Partners Lp | 2.89% | |
| BlackRock Enhanced Large Cap Core Fund, Inc. | 2.87% | |
| Western Midstream Partners Lp | 2.80% | |
| Cvr Partners Lp | 2.76% | |
| Capital Southwest Corp | 2.73% | |
| Enterprise Products Partners Lp | 2.71% | |
| Mplx Lp | 2.67% | |
| Black Stone Minerals Lp | 2.62% | |
| Alliance Resource Partners Lp | 2.61% | |
| Agnc Investment Corp | 2.56% |
By country
United States 143.48%By issuer
Companies 74.71%US Treasury 44.31%Other registered funds 24.47%The bonds mature in 0.1 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $14.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +5.44%, -3.08%, +0.25%.
How it works
HIPS is an index fund. It aims to track the EQM High Income Pass-Through Securities Index, before fees. "Pass-through" securities are set up to pay out almost all of their earnings to shareholders as cash. The index draws from four groups. The first is closed-end funds (CEFs), which are funds with a fixed number of shares that trade on an exchange. The second is real estate investment trusts (REITs). The third is asset managers and business development companies (BDCs), which lend to and invest in smaller private firms. The fourth is energy producers and pipeline companies structured as master limited partnerships (MLPs).
Each security must first pass minimum size and trading-volume screens. Then the index picks up to 10 from each group with the highest yield and lowest volatility over a set period. Each group gets 25% of the index, and every holding within a group gets an equal weight. That means a small partnership counts as much as a large one. The index is rebuilt once a year and reset to those weights every quarter. Portfolio turnover was 52%, according to the prospectus.
GraniteShares generally buys every security in the index and keeps at least 80% of assets in index securities. Because CEFs and BDCs charge their own fees, HIPS holders also pay a share of those costs. As of June 30, 2026, the fund reported 41 positions, including a U.S. Treasury bill equal to about 44% of net assets.
What it really costs
- HIPS charges 1.09% a year, versus an average of 5.38% for the similar funds below (4th of 7, cheapest first).
- Of that, 0.7% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $111 in the first year and $1,327 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HIPS | $111 | $347 | $601 | $1,327 |
In a retirement portfolio
Its index targets high-yield pass-through securities and pays out monthly, but its steep past drops point to a small income slice rather than a core position.
HIPS had a trailing 12-month yield of 12.41% as of October 27, 2026, paid monthly. That income has come with big swings. The fund launched in 2015, so it has no record from 2008. In the 2020 COVID crash it fell 53% in about a month, and it took 13.2 months to recover, on April 29, 2021. In the 2022 bear market it dropped 19.3% and took 14.8 months to recover. Its worst calendar year was 2022, at -13.3%. Anyone who had to sell shares during those stretches would have locked in losses. Payouts from these kinds of securities can also shrink under stress. The fund costs 1.09% a year, or $111 on $10,000 in the first year under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts; the trailing 12-month yield was 12.41% as of October 27, 2026.
- Investors who want one fund spread across CEFs, REITs, BDCs and energy MLPs, each reset to 25% at every quarterly rebalance.
- People holding a small income slice who can live with swings like the 53% drop in early 2020.
Look elsewhere if
- Growth-focused investors: as of December 31, 2025, HIPS returned 6.16% a year since inception, versus 14.82% for the S&P 500.
- Cost-focused investors: the 1.09% expense ratio is above MDIV's 0.75% and MORT's 0.43%.
- Anyone who may need to sell in a downturn: recovering from the 2022 drop took 14.8 months.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HIPS this fund | — | 1.09% | $109.9M | +1.0% | +8.5% |
| MORT VanEck Mortgage REIT Income ETF | 24% | 0.43% | $399.8M | -14.4% | +6.4% |
| PBDC Putnam BDC Income ETF | 13% | 13.94% | $283.1M | -8.9% | +5.9% |
| BIZD VanEck BDC Income ETF | 13% | 13.33% | $1.63B | -6.3% | +5.0% |
| MDIV Multi-Asset Diversified Income Index Fund | 13% | 0.75% | $416.4M | +9.8% | +11.9% |
| NDIV Amplify Natural Resources Dividend Income E… | 12% | 0.59% | $26.0M | +36.8% | +18.2% |
| YYY Amplify High Income ETF | 9% | 3.25% | $721.3M | -1.2% | +12.5% |
Questions investors ask
Does HIPS pay monthly dividends?
Yes. HIPS pays distributions monthly. It paid about $1.32 per share over the 12 months through October 27, 2026, a trailing yield of 12.41%. The money comes from securities built to pass most of their earnings through to shareholders: CEFs, REITs, BDCs and energy MLPs. A trailing yield shows what the fund paid in the past, not what it will pay. Payouts can change when the underlying holdings change theirs.
Is HIPS good for retirement income?
HIPS may suit retirees who want a high-yield slice of their portfolio, but it carries real risk. It fell 53% in early 2020 and took 13.2 months to recover. In 2022 it dropped 19.3%. As of December 31, 2025, its official one-year return was 1.73%, and its average annual return since inception was 6.16%. That high income has come with weaker total returns than the S&P 500, which returned 14.82% a year over the same period.
What's the difference between HIPS and MDIV?
Both are multi-asset income funds, but only about 13% of their holdings overlap. MDIV is cheaper, at 0.75% a year versus 1.09% for HIPS. As of October 27, 2026, MDIV returned 9.8% over one year and 11.9% a year over three years. HIPS returned 1% and 8.5% over the same periods. MDIV is also larger: about $416 million in net assets versus about $110 million for HIPS, as of June 30, 2026.
What is the expense ratio of HIPS?
The expense ratio is 1.09% a year, according to the prospectus filed October 28, 2026. That includes a 0.70% management fee. Under the SEC's standard example ($10,000 invested, 5% annual return), total costs would be about $111 after one year, $347 after three, $601 after five and $1,327 after ten. HIPS also owns CEFs and BDCs, so shareholders pay a share of those funds' own fees and expenses.
What does HIPS invest in?
As of June 30, 2026, HIPS held 41 positions, including a U.S. Treasury bill worth about 44% of net assets. Its largest stock holdings were Two Harbors Investment (3.0%), Plains All American Pipeline (3.0%), Kimbell Royalty Partners (2.9%), Dorchester Minerals (2.9%), Delek Logistics Partners (2.9%) and BlackRock Enhanced Large Cap Core Fund (2.9%). Other registered funds, mainly closed-end funds, made up about 24% of assets. Because holdings are equally weighted, no single stock dominates.