The International Securities Exchange (ISE) announced its partnership with?YieldShares, a new firm in the ETF industry, on Monday. The two entities plan to jointly develop and launch the ISE High Income IndexTM.
This product will enable to investors to efficiently track a high income and high discount Closed-End Fund portfolio, according to ISE’s press release.
Kris Monaco, Head of ISE ETF Ventures, said of the collaboration, “Partnering with YieldShares to create the ISE High Income Index is a demonstration of ISE’s growing presence in the indexing space. This agreement provides YieldShares with the global experience and network of ISE ETF Ventures while leveraging ISE’s business development, marketing support and capital to effectively bring products to market. We look forward to growing this partnership with YieldShares and Christian Magoon.”
Magoon, a known ETF industry entrepreneur and the CEO and Founder of YieldShares, added, “To partner with the International Securities Exchange is a foundational step in the advancement of YieldShares. ISE’s capabilities and talent have been a great asset to YieldShares already. Together we have produced a compelling index focused on high current income. This is a promising partnership that I believe will deliver benefits to the entire investment marketplace, not just the two firms.” ?
With this partnership, it will promote the ISE High Income Index and license the index to a third party as the basis for an ETF. It has a June launch date, pending regulatory approval. ?
The?ISE High Income Index has been described as providing exposure to a portfolio of closed-end funds that are selected from proprietary measures such as fund yield and discount. The index is a benchmark for investors interested in tracking the returns and income from the top 30 U.S listed Closed-End Funds upon selection by ISE.?