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Name

As of 12/02/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

Preferred-Plus ETF

IPPP | Active ETF

$10.38

$11.5 M

6.14%

$0.64

1.27%

Vitals

YTD Return

13.5%

1 yr return

15.0%

3 Yr Avg Return

N/A

5 Yr Avg Return

N/A

Net Assets

$11.5 M

Holdings in Top 10

17.4%

52 WEEK LOW AND HIGH

$10.4
$9.36
$10.68

Expenses

OPERATING FEES

Expense Ratio 1.27%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover N/A

Redemption Fee N/A

Min Investment

Standard (Taxable)

N/A

IRA

N/A

Fund Classification

Fund Type

Exchange Traded Fund

Name

As of 12/02/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

Preferred-Plus ETF

IPPP | Active ETF

$10.38

$11.5 M

6.14%

$0.64

1.27%

IPPP - Profile

Distributions

  • YTD Total Return 13.5%
  • 3 Yr Annualized Total Return N/A
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio N/A
DIVIDENDS
  • Dividend Yield 6.1%
  • Dividend Distribution Frequency Quarterly

Fund Details

  • Legal Name
    Preferred-Plus ETF
  • Fund Family Name
    N/A
  • Inception Date
    Dec 24, 2018
  • Shares Outstanding
    N/A
  • Share Class
    N/A
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Dave Gilreath

Fund Description

The Fund’s investment strategy is two-fold: (1) preferred securities, and (2) credit spread options on an S&P 500® ETF or the S&P 500® Index; both of which are described in detail below.
Preferred Investment Strategy
The Fund pursues its objective primarily by investing in issues of preferred securities and debt securities that the Fund’s adviser, Innovative Portfolios, LLC (the “Adviser”), believes to be undervalued. In making this determination, the Adviser evaluates the fundamental characteristics of an issuer, including an issuer’s creditworthiness, and also takes into account prevailing market factors. In analyzing credit quality, the Adviser considers not only fundamental analysis, but also an issuer’s corporate and capital structure and the placement of the preferred or debt securities within that structure. In evaluating relative value, the Adviser also takes into account call, conversion and other structural security features, in addition to such factors as the likely directions of credit ratings and relative value versus other fixed-income security classes.
Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings made for investment purposes) in a portfolio of preferred securities issued by U.S. and non-U.S. companies, including traditional preferred securities; hybrid preferred securities that have investment and economic characteristics of both preferred stock and debt securities; floating rate preferred securities; convertible preferred securities; and shares of other open-end (including other exchange-traded funds (“ETFs”)) and closed-
end funds that invest primarily in preferred securities. The Fund may invest in preferred securities of all issuer capitalizations. The Fund may also invest in publicly-traded partnerships (“PTPs”).
The Fund intends to concentrate (i.e., hold more than 25% of its total assets) its investments in one or more industries within the Financials Sector (including securities issued by banks, diversified financials, real estate (including real estate investment trusts (“REITs”) and insurance companies). As of the date of this Prospectus, the Fund was concentrated in companies in the Banking Industry, as classified by the Bloomberg Industry Classification Standard (BICS). In addition, the Fund also may focus its investments in other sectors such as (but not limited to) energy, industrials, utilities, health care and telecommunications. The Adviser retains broad discretion to allocate the Fund’s investments across various sectors and industries.
The Fund may invest in preferred equity or debt securities of any maturity or credit rating, including investment grade securities, below investment grade securities (commonly known as “junk bonds”) and unrated securities. The Fund generally seeks to maintain a minimum weighted average senior debt rating of the issuing companies in which it invests of BBB-, which the Fund considers to be investment grade. Although a company’s senior debt rating may be BBB-, an underlying security issued by such company in which the Fund invests may have a lower rating than BBB-. A security must be rated no lower than B- or B3 in order to be purchased by the Fund (or if unrated, of similar quality in the opinion of the Adviser).
S&P 500® Options Investment Strategy
The Fund intends to maintain approximately 10% asset exposure to a credit spread options strategy, although market conditions may dictate additional exposure. The Fund seeks to achieve a credit spread on an S&P 500® ETF or the S&P 500® Index by selling/writing an out-of-the-money (an out-of-the-money put option is one whose strike price is lower than the market price of the underlying reference asset of the option) short put option each month while simultaneously purchasing an out-of-the-money long put option below the short option position. A credit spread is an options strategy that involves the purchase of one option and a sale of another option in the same class and with the same expiration but different strike prices. Such a strategy results in a net credit for entering the option position, and is profitable when the spreads narrow or expire. By buying a protective long put option, the Fund seeks to hedge any significant downside risk posed by the short put option. The short option premium is derived from “implied volatility” — the expected level of volatility priced into an option — and is higher, on average, than the volatility actually experienced on the security underlying the option.
For example, an option buyer typically pays a premium to an option seller, such as the Fund, that is priced based on the expected amount by which the value of the instrument underlying the option will move up or down. On average, this expected amount of value movement (or implied volatility) is generally greater than the amount by which the value of the underlying instrument actually moves (realized volatility). By entering into derivatives contracts, the Fund is, in essence, accepting a risk that its counterparty seeks to transfer in exchange for the premium received by the Fund under the derivatives contract. By providing this risk transfer service, the Fund seeks to benefit over the long-term from the difference between the level of volatility priced into the options it sells and the level of volatility realized on the securities underlying those options. There can be no assurance that the variance risk premium will be positive for the Fund’s investments at any time or on average and over time.
The premium paid for a long put option is typically priced based on the expected amount by which the value of the instrument underlying the option will move up or down. On average, this expected amount of value movement (or implied volatility) is generally greater than the amount by which the value of the underlying instrument actually moves (realized volatility). By entering into this derivative contract, the Fund is, in essence, transferring a risk that its counterparty seeks to accept in exchange for the premium received by the counterparty under the derivatives contract. By transferring this risk to a counterparty, the Fund seeks to benefit over the long-term from the difference in premium collected on the short put option premium above and the long option premium paid herein. There can be no assurance that the variance risk premium will be positive for the Fund’s investments at any time or on average and over time.
A put option typically gives the option buyer the right to sell, and obligates the option seller to purchase, a security at an agreed-upon price. Generally, the Fund intends to sell put options that are out-of-the-money. Options that are more substantially out-of-the-money generally would pay lower premiums than options that are at or slightly out-of-the-money. By selling put options, the Fund will sell protection against depreciation below the option exercise price to the option purchaser in exchange for an option premium. If an option is exercised, the Fund will either purchase or sell the security at the strike price or pay to the option holder the difference between the strike price and the current price level of the underlying equity security, ETF or index, depending on the terms of the option.
The potential returns of the Fund are generally limited to the amount of cash (premiums) the Fund receives when selling short puts, net of any cash (premiums) paid by the Fund to purchase long puts, plus the returns of the underlying Investments in which the Fund invests.
When the Fund enters into derivatives transactions, it is typically required to post collateral to secure its payment or delivery obligations. The Fund invests as indicated above in preferred securities. These securities will be used to meet margin requirements on the Fund’s option writing strategy. The Fund may write put options in respect of an underlying security in which the Fund does not have a short position (so-called “naked” put options). The Fund may hold positions in equities and ETFs to the extent necessary to
meet margin requirements. Generally, the investment goal is to write options with a target of 10% spread notional exposure however market conditions may dictate more notional exposure. The Fund may be considered to have created investment leverage; leverage increases the volatility of the Fund and may result in losses greater than if the Fund had not been leveraged.
Read More

IPPP - Performance

Return Ranking - Trailing

Period IPPP Return Category Return Low Category Return High Rank in Category (%)
YTD 13.5% -8.3% 14.4% N/A
1 Yr 15.0% -14.3% 2.9% 30.86%
3 Yr N/A* -10.1% 7.4% 3.95%
5 Yr N/A* -7.1% 6.1% N/A
10 Yr N/A* -3.6% 5.4% N/A

* Annualized

Return Ranking - Calendar

Period IPPP Return Category Return Low Category Return High Rank in Category (%)
2023 7.9% -26.1% 0.9% N/A
2022 N/A -1.5% 11.1% N/A
2021 N/A -9.1% 13.7% N/A
2020 N/A 1.6% 7.2% N/A
2019 N/A -3.2% -0.5% N/A

Total Return Ranking - Trailing

Period IPPP Return Category Return Low Category Return High Rank in Category (%)
YTD 13.5% -19.4% 14.4% N/A
1 Yr 15.0% -14.3% 16.6% 36.36%
3 Yr N/A* -10.1% 9.3% 7.41%
5 Yr N/A* -5.8% 6.1% N/A
10 Yr N/A* -2.9% 5.4% N/A

* Annualized

Total Return Ranking - Calendar

Period IPPP Return Category Return Low Category Return High Rank in Category (%)
2023 14.6% -26.1% 0.9% N/A
2022 N/A -1.5% 11.1% N/A
2021 N/A -9.1% 13.7% N/A
2020 N/A 1.7% 7.2% N/A
2019 N/A -3.2% -0.4% N/A

IPPP - Holdings

Concentration Analysis

IPPP Category Low Category High IPPP % Rank
Net Assets 11.5 M 12.9 M 16.4 B 98.84%
Number of Holdings 106 32 500 76.67%
Net Assets in Top 10 2.08 M 2.06 K 2.37 B 92.22%
Weighting of Top 10 17.45% 12.4% 48.5% 36.67%

Top 10 Holdings

  1. Synovus Financial Corp 2.09%
  2. Athene Holding Ltd 2.00%
  3. JPMorgan Chase Co 1.86%
  4. JPMorgan Chase Co 1.84%
  5. KeyCorp 1.77%
  6. Bank of America Corp 1.73%
  7. Banc of California Inc 1.65%
  8. Stifel Financial Corp 1.52%
  9. Digital Realty Trust Inc 1.50%
  10. American National Group Inc 1.49%

Asset Allocation

Weighting Return Low Return High IPPP % Rank
Preferred Stocks 		99.22% 2.27% 115.85% 16.67%
Cash 		0.98% -27.79% 5.28% 1.11%
Stocks 		0.00% -2.67% 34.04% 100.00%
Convertible Bonds 		0.00% 0.00% 31.65% 78.89%
Bonds 		0.00% 0.00% 83.26% 77.78%
Other 		-0.20% -0.16% 11.21% 67.78%

IPPP - Expenses

Operational Fees

IPPP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.27% 0.22% 2.45% 56.04%
Management Fee 0.85% 0.00% 1.00% 86.05%
12b-1 Fee N/A 0.00% 1.00% 22.86%
Administrative Fee N/A 0.01% 0.55% N/A

Sales Fees

IPPP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 0.00% 5.75% N/A
Deferred Load N/A 1.00% 2.25% N/A

Trading Fees

IPPP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A N/A N/A N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

IPPP Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover N/A 12.00% 199.00% N/A

IPPP - Distributions

Dividend Yield Analysis

IPPP Category Low Category High IPPP % Rank
Dividend Yield 6.14% 0.00% 9.57% 94.62%

Dividend Distribution Analysis

IPPP Category Low Category High Category Mod
Dividend Distribution Frequency Quarterly Quarterly Monthly Quarterly

Net Income Ratio Analysis

IPPP Category Low Category High IPPP % Rank
Net Income Ratio N/A 0.88% 7.54% N/A

Capital Gain Distribution Analysis

IPPP Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

View More +

IPPP - Fund Manager Analysis

Managers

Dave Gilreath

Start Date

Tenure

Tenure Rank

Dec 24, 2018

3.44

3.4%

Mr. Gilreath attended Miami University in Oxford, Ohio, where he earned a Bachelor of Science degree. Mr. Gilreath has earned his Certified Financial Planner® (CFP) credential. He is a founding principal and Chief Investment Officer for Innovative Portfolios, LLC and Sheaff Brock Investment Advisors, LLC (SBIA). SBIA, an affiliate of the Adviser, is a SEC registered investment advisor. As Chief Investment Officer, Mr. Gilreath, shares responsibility for setting investment policy, asset allocation, and security selection for the Adviser. He has more than 30 years of experience in the financial services industry, beginning with Bache Halsey Stuart Shields and later with Morgan Stanley/Dean Witter. Mr. Gilreath has been with the Adviser since 2015 and SBIA since 2001.

JR Humphreys

Start Date

Tenure

Tenure Rank

Dec 24, 2018

3.44

3.4%

JR’s experience as a financial consultant spans more than 25 years, and he has worked extensively in alternative asset allocations and the creation of equity selection processes to achieve greater quantitative and more disciplined equity selections. Working much of that time as a portfolio manager at BKD Wealth Advisor, JR previously served as a trust investment officer at United National Bank in West Virginia, and as a senior options specialist in the active trader division at Charles Schwab in Indianapolis. JR holds a Bachelor of Business Administration degree in Finance from Marshall Univer

Tenure Analysis

Category Low Category High Category Average Category Mode
0.09 30.32 7.94 11.42

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