HIPS: High Alternative Income in a Diversified Wrapper

The acronym “HIPS” stands for high-income pass-through securities. These are securities that must “pass through” at least 90% of their earnings to investors. As a result of the earnings pass-through, these entities are not subject to corporate taxation. Examples of pass-through instruments and their definitions are explained below: Although each category of pass-through securities has [...] The post HIPS: High Alternative Income in a Diversified Wrapper appeared first on ETF Trends .