EPRF

S&P Investment Grade Preferred ETF

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EPRF

S&P Investment Grade Preferred ETF

Monthly Dividend Yield

6.27%

SEC 30 Day Yield

5.60%

As of 11/21/2024. Performance quoted represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.

Summary

The Innovator S&P Investment Grade Preferred ETF is based on the S&P U.S. High Quality Preferred Stock Index, which selects floating, variable and fixed-rate investment grade preferred issues (BBB- or higher) from U.S. listed preferred stocks on a quarterly basis. The portfolio seeks to offer a diversified high credit quality preferred allocation.

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Why Credit Quality Matters in Preferreds

During the recession, investment grade preferred indices performed better than both broad preferred indexes and high yield bonds. Historically, EPRF has provided exposure to the preferred space with a near-identical yield, while holding only investment grade preferred stocks.

2008 Total Return Of Preferred Stock And Corporate Bond Indices

Credit Quality Exposure

Source: Bloomberg. Data reflects calendar year 2008
Past performance is not indicative of future results. You cannot invest directly in an index.
EPRF is the only Preferred ETF designed to invest solely in investment grade preferreds.

Fund Characteristics

Coupon Type

Weighted Average Coupon 5.5%
Weighted Average Duration 13.2 Years
Weighted Average % of Par 79.3%
% Qualified Dividend Income (QDI) 90.0%
Weighted Average Credit Rating BBB
Fixed 80.9%
Variable 14.4%
Floating 4.8%
Source: Bloomberg L.P. as of 10/31/2023
QDI=Qualified Dividend Income. Qualified dividends are taxed at capital gains tax rates, which may be lower than the tax rate for ordinary income.

Standarized Performance

  YTD 1 Year 3 Year 5 Year Inception
EPRF NAV 9.94% 17.92% -1.40% 1.10% 2.39%
EPRF Closing Price 10.14% 18.40% -1.40% 1.08% 2.37%
Data as of 9/30/2024. The Fund incepted on 5/23/2016. Performance quoted represents past performance, which is no guarantee of future results. Returns less than one year are cumulative. Visit www.innovatoretfs.com/eprf for current month-end performance. Investment returns and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.

Reasons for EPRF

  • SEC 30 Day Yield¹ 5.60%, distributed monthly.
  • The only ETF designed to hold 100% investment grade preferred stocks.
¹ As of 11/21/2024

Where Does It Fit In My Portfolio?

Potential For High Income

In a low-yield environment, preferreds may be one of the few asset classes still providing a meaningful source of income.

Improve Preferred Credit Quality

Complement existing preferred exposure by adding EPRF to potentially improve overall preferred credit quality.

Corporate Bond Alternative

Investors can maintain an investment grade portfolio while seeking to increase yield through EPRF.

High Yield Bond Alternative

EPRF currently exhibits an attractive yield while maintaining 100.0% exposure to investment grade preferred stock, with significant exposure to QDI-preferreds. 1

  1. QDI is Qualified Dividend Income. Qualified dividends are taxed at capital gains tax rates, which may be lower than the tax rate for ordinary income.

EPRF Methodology

Starting Universe: S&P Investment Grade Preferred Index
Preferreds Within Each Issuer Are Equally Weighted
EACH ISSUER IS ASSIGNED AN EQUAL WEIGHT
Innovator S&P Investment Grade Preferred ETF (EPRF)

Documents

Fact sheet

Defined Outcome ETFs™

The first group of ETFs designed to provide investors with built-in buffers and exposure to the growth of equity and bond markets, to a cap, in a tax-efficient vehicle.

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