Fund Stats

as of

Symbol

HIPS

Primary Exchange

NYSE

CUSIP

26922A867

ISIN

US26922A8678

Inception Date

1/7/2015

Dividends Paid

Monthly

Fund Type

Exchange
Traded Fund

Number of Holdings

Market Price

NAV

NAV Change ($)

Total Net Assets

Premium/Discount(%)

Difference ($)

Shares Outstanding

Management Fees

0.75%

Acquired Fund Fees and Expenses1

0.68%

Total Annual Fund Operating Expenses

1.43%

Distribution Rate*
(as of 4/30/16)

7.88%

30-day SEC Yield**
(as of 4/30/16)

6.75%

Please click here for Fund standardized performance. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

1 Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. Total Annual Fund Operating Expenses do not reflect Fund expenses paid indirectly and do not correlate to the expense ratios in the Fund’s Financial Highlights because the Financial Highlights include only the direct operating expenses incurred by the Fund and exclude Acquired Fund Fees and Expenses.

*Distribution Rate represents a single distribution from the fund and does not represent total return to the fund. The distribution rate is calculated by annualizing the most recent distribution and dividing it by the most recent NAV.

**30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent month end. This figure reflects the interest earned during the period after deducting the Fund’s expenses for the period.

About The Master Income ETF (NYSE ARCA SYMBOL: HIPS)

Master Shares receives its income from across America.

There are Real Estate Investment Trusts (REITs) whose income can come from hospitals, hotels, factories, malls, and movie theaters, gyms, server farms, nursing homes, ships, apartments and even drug stores.

Many Master Limited Partnerships (MLPs) can pay out large amounts of cash on a quarterly basis.

There are amusement parks, cemeteries, funeral homes and fertilizer plants. There are lots of energy MLP’s. Many ship oil and gas throughout the country. There are several that store energy. There are refinery MLP’s that convert oil to gasoline or jet fuel. They can benefit from low oil prices. The same is true for chemical companies that convert oil to furniture polish, car wax, or hundreds of household products. There are MLP’s that extract oil & gas from the ground, and can send the profits to shareholders.

Business Development Companies (BDCs) make loans to small and mid-sized companies.

They often assist management teams and help grow their business when called upon. BDC’s lend to a wide range of industries. Their loans often reset if interest rates move higher.

Closed End Funds (CEFs) are included in the Master Income ETF.

A professional investment group often leads a CEF. They specialize in a theme. They could invest in value stocks, growth stocks, or even arbitrage. The CEF often invests in a bond fund with many different securities and duration. As such, an investors risk is not limited to a single issuer. There is exposure to emerging market debt. Emerging market debt is often tied to short rates.

There are a few high yielding common stocks included in HIPS.

The Master Income ETF is broadly diversified. We hope to provide a dependable yield in all environments. The net asset value of the portfolio has the potential to change over time. There are no risk free high yielding assets. This ETF seeks to track the performance, before fees and expenses, of the TFMS HIPS 300 Index and to capture the profits of American industry through income versus capital gains. HIPS distributes that income monthly with one 1099 and no K-1’s.

 

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. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

An investment in the Fund does not receive the same tax advantages as a direct investment in a Pass-Thru Security. Funds accrue deferred income taxes for future tax liabilities associated with the portion of Pass-Thru Security distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV and as a result the Fund's after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. The potential tax benefits from investing in Pass-Thru Securities depend on them being treated as partnerships for federal income tax purposes.

Diversification does not assure a profit or protect against loss in a declining market.

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by clicking here. Read the prospectus carefully before investing.

The TFMS HIPS 300 Index is constructed to capture 300 high income securities, typically with pass-through structures, across the following sectors: (i) closed-end funds (“CEFs”), (ii) mortgage real estate investment trusts (“REITs”), (iii) commercial equity REITs, (iv) residential/diversified REITs, (v) asset management and business development companies (“BDCs”), and (vi) energy production and energy transportation & processing companies. Energy-related companies included in the Index are expected to primarily be structured as master limited partnerships (“MLPs”). CEFs included in the Index are limited to taxable, debt-based funds and may include CEFs that invest primarily in bank loans, high-yield securities (also known as “junk bonds”), foreign securities (including those in emerging markets), and mortgage- or asset-backed securities. One may not directly invest in an index.

The Standard & Poor's 500 Index (S&P 500) is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

Please consult your tax advisor about the tax consequences of an investment in Fund shares, including the possible application of foreign, state, and local tax laws.

Exchange Traded Concepts, LLC serves as the investment advisor and Master Income ETF. The Funds are distributed by Quasar Distributors, LLC, which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.