Prime Indexes creates financial indexes that solve problems for both professional and self-directed investors. Our index designs focus on emerging trends in the exchange-traded fund (ETF) industry, and our founders have participated in the creation and launch of over a hundred financial products and indexes across all major asset classes. Prime Indexes are used as the basis for innovative new investment solutions for investors, and use intuitive design principles so that new investment products can ultimately provide low-cost, efficient, and convenient access.
The Prime Equity Closed End Fund index seeks to select US equity-focused closed end funds with an optimal combination of high distribution rate, high discount, low expense ratio, and high liquidity using the Prime ScoreTM methodology. The top twenty-five highest scoring closed end funds are selected for the index portfolio.
The index is designed to benefit from a rising interest rate environment. It seeks to achieve this by selecting senior loan and floating rate Closed-End Funds (“CEF’s”) that have a substantial allocation to floating rate senior loans or other floating rate instruments. The index yield as of December 11, 2017 is 6.89%.
The Prime Senior Loan and Income CEF index has been licensed to Amplify ETFs to create a financial product called the Amplify YieldShares Senior Loan and Income ETF (Symbol: YESR).
Prime Indexes was founded by veterans of the exchange-traded fund (ETF) industry that identified an emerging topic: product proliferation. ETFs have changed the investment management industry for the better, but their indelible mark has also resulted in thousands of options for both professional and self-directed investors. Having more choices is a healthy sign of competition among product issuers, and allows investors to achieve certain exposures with greater efficiency, lower cost, and convenient access. Nevertheless, the rate of innovation can sometimes cause information overload, potentially resulting in decision paralysis.
Prime Indexes such as Prime Equity 10 CEF Index, and the Prime Senior Loan and Income CEF Index are based on the principles of intuitive selection criteria; common sense factors to help narrow down the available choices. Our methodology, which is encompassed in our Prime ScoreTM, can help investors of all types by identifying, screening, and ranking ETFs by those factors. The end result is compiled into an index of ETFs whose selection we can all understand.