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Trending ETFs

Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

$11.05

$12.9 M

1.74%

$0.19

1.55%

Vitals

YTD Return

-8.3%

1 yr return

2.9%

3 Yr Avg Return

7.4%

5 Yr Avg Return

N/A

Net Assets

$12.9 M

Holdings in Top 10

18.7%

52 WEEK LOW AND HIGH

$11.1
$11.05
$12.35

Expenses

OPERATING FEES

Expense Ratio 1.55%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 26.75%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$5,000

IRA

$5,000


Fund Classification

Fund Type

Open End Mutual Fund


Name

Price

Aum/Mkt Cap

YIELD

Exp Ratio

Watchlist

$11.05

$12.9 M

1.74%

$0.19

1.55%

IPPPX - Profile

Distributions

  • YTD Total Return -8.3%
  • 3 Yr Annualized Total Return 7.4%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency Semi-Monthly
  • Net Income Ratio 3.31%
DIVIDENDS
  • Dividend Yield 1.7%
  • Dividend Distribution Frequency Quarterly

Fund Details

  • Legal Name
    Innovative Preferred Plus Fund
  • Fund Family Name
    Innovative
  • Inception Date
    Dec 24, 2018
  • Shares Outstanding
    N/A
  • Share Class
    Inst
  • Currency
    USD
  • Domiciled Country
    United States

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 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 Fund’s 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.

The Fund invests at least 80% of its net assets 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, closed-end or exchange-traded funds (“ETFs”) that invest primarily in preferred securities as described herein. The Fund may invest in preferred securities of all issuer capitalizations.

The Fund intends to concentrate its investments in securities issued by financial services companies such banks, diversified financials, real estate (including real estate investment trusts (“REITs”)) and insurance companies, meaning that the Fund will invest at least 25% of its net assets in securities issued by such companies. In addition, the Fund also may focus its investments in other sectors such as (but not limited to) energy, industrials, utilities, pipelines, 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 may expose up to 10% of its assets to a credit spread options strategy however market conditions may dictate additional exposure. The Fund seeks to achieve a credit spread on an S&P 500 ETF or 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 expiration but different strike prices. Such a strategy results in a net credit for entering the option position, and wants the spreads to narrow or expire for profit. Buying the protective long put option is hedging any significant downside risk posed by the short put option by employing a defensive position.

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.

When the Fund enters into derivatives transactions, it is typically required to post collateral, or “initial margin,” to secure its payment or delivery obligations.

The Fund invests as indicated above in preferred securities. These securities will be used to meet asset coverage or 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. The Fund may hold positions in equities and ETFs to the extent necessary to meet asset coverage or 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.

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IPPPX - Performance

Return Ranking - Trailing

Period IPPPX Return Category Return Low Category Return High Rank in Category (%)
YTD -8.3% -8.3% 16.8% 100.00%
1 Yr 2.9% -17.0% 2.9% 1.23%
3 Yr 7.4%* -11.4% 7.4% 1.32%
5 Yr N/A* -7.0% 6.7% N/A
10 Yr N/A* -3.1% 5.7% N/A

* Annualized

Return Ranking - Calendar

Period IPPPX Return Category Return Low Category Return High Rank in Category (%)
2022 0.9% -26.1% 0.9% 1.27%
2021 4.8% -1.5% 11.1% 11.39%
2020 13.7% -9.1% 13.7% 1.33%
2019 N/A 1.6% 7.2% N/A
2018 N/A -3.2% -0.5% N/A

Total Return Ranking - Trailing

Period IPPPX Return Category Return Low Category Return High Rank in Category (%)
YTD -8.3% -19.4% 16.8% 96.47%
1 Yr 2.9% -17.0% 16.6% 9.89%
3 Yr 7.4%* -11.4% 9.3% 4.82%
5 Yr N/A* -5.7% 6.7% N/A
10 Yr N/A* -2.7% 5.7% N/A

* Annualized

Total Return Ranking - Calendar

Period IPPPX Return Category Return Low Category Return High Rank in Category (%)
2022 0.9% -26.1% 0.9% 1.27%
2021 4.8% -1.5% 11.1% 11.39%
2020 13.7% -9.1% 13.7% 1.33%
2019 N/A 1.7% 7.2% N/A
2018 N/A -3.2% -0.4% N/A

NAV & Total Return History


IPPPX - Holdings

Concentration Analysis

IPPPX Category Low Category High IPPPX % Rank
Net Assets 12.9 M 12.9 M 16.4 B 100.00%
Number of Holdings 99 32 500 78.72%
Net Assets in Top 10 2.68 M 2.06 K 2.37 B 91.49%
Weighting of Top 10 18.71% 12.4% 48.5% 52.13%

Top 10 Holdings

  1. Fifth Third Bancorp 4.9% 3.65%
  2. Prudential Financial, Inc. 2.41%
  3. Bank of America Corporation 5.875% 2.33%
  4. State Street Corporation Deposit Shs Repr 1/4000th Non Cum Perp Pfd Shs Ser 2.18%
  5. AerCap Holdings N.V. 5.875% 2.17%
  6. MetLife Inc Series F 1.96%
  7. General Electric Company 5% 1.96%
  8. Regions Financial Corporation 5.75% 1.91%
  9. ATHENE HOLDINGS LTD. SERIES A 6.350%, TO 6/30/2029 (BERMUDA) 1.86%
  10. Huntington Bancshares Incorporated 4.45% 1.83%

Asset Allocation

Weighting Return Low Return High IPPPX % Rank
Preferred Stocks
57.50% 2.27% 115.85% 34.04%
Bonds
36.46% 0.00% 83.26% 61.70%
Cash
4.74% -27.79% 5.28% 2.13%
Convertible Bonds
0.87% 0.00% 31.65% 67.02%
Stocks
0.44% -2.67% 34.04% 25.53%
Other
0.00% -0.16% 11.21% 25.53%

Stock Sector Breakdown

Weighting Return Low Return High IPPPX % Rank
Utilities
100.00% 0.00% 100.00% 2.78%
Technology
0.00% 0.00% 0.00% 5.56%
Real Estate
0.00% 0.00% 100.00% 25.00%
Industrials
0.00% 0.00% 7.56% 38.89%
Healthcare
0.00% 0.00% 4.02% 36.11%
Financial Services
0.00% 0.00% 100.00% 22.22%
Energy
0.00% 0.00% 14.14% 16.67%
Communication Services
0.00% 0.00% 1.77% 16.67%
Consumer Defense
0.00% 0.00% 0.00% 5.56%
Consumer Cyclical
0.00% 0.00% 0.00% 5.56%
Basic Materials
0.00% 0.00% 0.00% 5.56%

Stock Geographic Breakdown

Weighting Return Low Return High IPPPX % Rank
US
0.44% -2.67% 34.04% 23.40%
Non US
0.00% 0.00% 2.17% 18.09%

Bond Sector Breakdown

Weighting Return Low Return High IPPPX % Rank
Corporate
95.19% 62.31% 100.00% 86.17%
Cash & Equivalents
4.75% 0.00% 8.83% 9.57%
Government
0.06% 0.00% 21.71% 52.13%
Derivative
0.00% 0.00% 12.03% 19.15%
Securitized
0.00% 0.00% 0.02% 5.32%
Municipal
0.00% 0.00% 0.00% 4.26%

Bond Geographic Breakdown

Weighting Return Low Return High IPPPX % Rank
US
34.25% 0.00% 66.52% 44.68%
Non US
2.21% 0.00% 22.86% 64.89%

IPPPX - Expenses

Operational Fees

IPPPX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.55% 0.22% 2.45% 27.37%
Management Fee 1.00% 0.00% 1.00% 93.10%
12b-1 Fee 0.00% 0.00% 1.00% 2.86%
Administrative Fee N/A 0.01% 0.55% N/A

Sales Fees

IPPPX 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

IPPPX 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.

IPPPX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 26.75% 12.00% 199.00% 48.00%

IPPPX - Distributions

Dividend Yield Analysis

IPPPX Category Low Category High IPPPX % Rank
Dividend Yield 1.74% 0.00% 9.29% 81.44%

Dividend Distribution Analysis

IPPPX Category Low Category High Category Mod
Dividend Distribution Frequency Quarterly Annually Monthly Monthly

Net Income Ratio Analysis

IPPPX Category Low Category High IPPPX % Rank
Net Income Ratio 3.31% 0.88% 7.54% 70.73%

Capital Gain Distribution Analysis

IPPPX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Semi-Monthly Annually Semi-Monthly Annually

Distributions History

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IPPPX - Fund Manager Analysis

Tenure Analysis

Category Low Category High Category Average Category Mode
0.09 30.32 7.92 11.42