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IPPP Preferred-Plus ETF

IPPP Preferred-Plus ETF

IPPP Preferred-Plus ETF

The Fund's primary investment objective is to seek current income.

The Fund invests in preferred equities and an S&P 500 index-based option overlay for additional income.

  • Performance
  • Price
  • Holdings
  • Allocation
  • Distributions
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  • Construction
  • Performance
    Data as of 02/01/2023
  • Average Annual
  • Calendar Year Returns
1 Mo. 3 Mos. YTD 1-Year Annualized 3-Year Annualized Since Inception Annualized
(12/24/18)
Preferred-Plus - Market Price 14.36% 13.09% 14.36% -8.51% 0.82% 5.57%
Preferred-Plus - NAV 13.30% 12.64% 13.30% -8.89% 0.68% 5.47%
ICE BofA Core Plus Fixed Rate Preferred Securities Index 13.72% 14.21% 13.72% -6.27% -0.35% 4.51%
S&P U.S. Preferred Securities Index 11.99% 13.11% 11.99% -5.45% 0.99% 5.79%
1 Mo. 3 Mos. YTD 1-Year Annualized 3-Year Annualized Since Inception Annualized
(12/24/18)
Preferred-Plus - Market Price 13.30% 12.64% 13.30% -8.89% 0.68% 5.47%
Preferred-Plus - NAV 14.36% 13.09% 14.36% -8.51% 0.82% 5.57%
ICE BofA Core Plus Fixed Rate Preferred Securities Index 13.72% 14.21% 13.72% -6.27% -0.35% 4.51%
S&P U.S. Preferred Securities Index 11.99% 13.11% 11.99% -5.45% 0.99% 5.79%
Year 2019 2020 2021
Preferred-Plus - Market Price 19.77% 9.05% 7.74%
Preferred-Plus - NAV 19.77% 9.05% 7.74%
ICE BofA Core Plus Fixed Rate Preferred Securities Index 17.42% 7.38% 3.27%
S&P U.S. Preferred Securities Index 17.64% 7.97% 6.64%

The performance data quoted represents past performance; past performance does not guarantee future results. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns for periods shorter than one year are not annualized. Brokerage commissions and expenses will reduce the returns.

Prior to listing date, the ETF operated as a mutual fund. The Fund’s objective, policies, guidelines, and restrictions are in all material respects equivalent to those of the predecessor mutual fund, Preferred-Plus, which was created for reasons entirely unrelated to the establishment of a performance record.

The NAVs of the predecessor mutual fund are used for both NAV and market price performance from inception to listing. For ETFs, the market price return is calculated from closing prices as determined by the fund’s listing exchange. If you trade your shares at another time, your return may differ. For the period from inception date to listing date, the NAV of the fund is used as a proxy for the market price to calculate returns. ETFs trade like stocks, fluctuate in market value and may trade either at a premium or discount to their net asset value. ETFs shares trade at market price and are not individually redeemable with the issuing fund, other than in large share amounts called creation units.

Indices are shown for comparative purposes only and may not necessarily be representative of the fund’s portfolio. An investor cannot invest directly in an index, and index performance does not reflect the deduction of any fees, expenses or taxes.

ICE BofA Core Plus Fixed Rate Preferred Securities Index is an index designed to measure the performance of fixed rate U.S. dollar-denominated preferred securities issued in the U.S domestic market with a rating of at least B3 (based on an average of Moody’s, S&P and Fitch) and an investment-grade country risk profile.

S&P U.S. Preferred Securities Index is an index designed to measure the performance of the U.S. preferred stock market and consists of U.S. preferred stocks with a market cap greater than $100 million and a maturity of at least one year or longer.


Price
Data as of 02/07/2023

View Premium Discount History
NAV Price
Net Asset Value $10.08 Market Price $10.07
$ Daily Change $0.04 $ Daily Change $0.49
% Daily Change 0.43% % Daily Change 0.49%
Median 30-Day Bid/Ask Spread 1.29% Premium/Discount -0.06%

Net Asset Value (NAV): NAV is calculated as of the scheduled close of regular trading on the New York Stock Exchange. The NAV is calculated by dividing the fund’s net assets by its outstanding shares.

Market Price: Market price is the closing price as determined by the fund’s listing exchange. Shares are bought and sold at market price, not net asset value (NAV), and are not individually redeemable from the fund.

Median 30-Day Bid/Ask Spread: An ETF’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, is computed by identifying the ETF’s national best bid and national offer as of the end of each 10 second interval during each trading day of the last 30 calendar days, dividing the difference between each such bid and offer by the midpoint of the national best bid and national offer, and identifying the median of those values. For the first 30 calendar days, the median bid-ask spread for the ETF will reflect the number of calendar days the ETF has been operating.

Top Holdings
Data as of 02/08/2023

View All Holdings
Company % Net Assets Company % Net Assets
CITIGROUP INC 2.13% BRIGHTHOUSE FINL INC 1.52%
ATHENE HOLDING LTD 2.10% MORGAN STANLEY 1.48%
SYNOVUS FINL CORP 2.03% AMERICAN EQTY INVT LIFE HLD CO 6.625 DEP PFD B 1.47%
JPMORGAN CHASE & CO 1.90% AMERICAN EQTY INVT LIFE HLD CO 5.95 DP RP PFD A 1.46%
WESCO INTL INC 1.60% NEW YORK CMNTY BANCORP INC 1.45%

Fund holdings are subject to change at any time and should not be considered recommendations to buy or sell any security.

SECTOR ALLOCATION
Data as of 12/31/2022
Financial Services 74.50%
Utilities 9.91%
Energy 3.45%
Consumer Discretionary 2.64%
Real Estate 2.59%
Consumer Staples 1.89%
Communication Services 1.74%
Industrials 1.61%
Cash or Equivalent 1.06%
Derivative 0.41%
Closed End Funds 0.20%
Sector allocations are subject to change at any time. Total allocation percentages may not equal 100% due to rounding. Sector allocation excludes written (short) put options. Sector allocations are subject to change at any time. Total allocation percentages may not equal 100% due to rounding. Sector allocation excludes written (short) put options.
Coupon Structure
Data as of 12/31/22
Coupon Structure (%) Fund Market Value
Fixed-Rate Securities 40.19%
Fixed-to-Fixed Rate Securities 0.00%
Fixed-to-Floating Rate Securities 55.68%
Floating Rate Securities 2.46%
Other Securities 1.67%

Fixed-to-Fixed Rate  Securities step from one fixed rate to another based on a schedule. Fixed-to-Floating Rate Securities pay a fixed coupon for a set number of years, then convert to a variable coupon for the remaining life of the security that is based on a benchmark rate, such as the 3-month LIBOR. Other includes income-producing securities that do not have a specified coupon structure. Examples would include, but are not limited to, shares of income-oriented EFT’s or other closed-end funds.

Issuer Credit Breakdown
Data as of 12/31/22
Credit Quality (%) Fund Market Value
AAA 0.00%
AA 13.58%
A 30.22%
BBB 31.13%
BB 9.06%
B 0.00%
NR 14.95%
Cash & Equivalents 1.06%

Issuer credit ratings represent the issuer’s overall credit creditworthiness and financial strength and not the issue rating which refers to specific financial obligations and considers ranking in the capital structure. Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s, Fitch, DBRS or AM Best. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade rating; BB, B, CCC, CC, C and D are below-investment grade ratings. Holdings designated NR are not rated by these national rating agencies. Excludes credit spread put options.

Yield
Data as of 12/31/2022
Characteristic Fund Characteristic Fund
30-day SEC yield
30-day SEC Yield

The 30-day SEC yield is a standard calculation developed by the U.S. Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is calculated by dividing net investment income per share during a 30-day period by the net asset value as of the close of that period. The 30-day SEC yield reflects the rate at which the Fund is earning income on its current portfolio of securities excluding options.

7.67% Distribution yield (%)
Distribution yield

Distribution yields is calculated by annualizing the most recent distribution – from dividends, interest and option income - and dividing by the net asset value per share as of the reported date. Distributions may include a return of capital. Shareholders of record will be notified of the estimated return of capital for each distribution. Please click here for more information.

4.34%
Trailing 12-month yield(%)
Trailing 12-month yield

Trailing 12-month yield is calculated by adding the Fund’s trailing 12-month distributions – from dividends, interest and option income - and dividing by the net asset value per share as of the reported date. Distributions may include a return of capital. Shareholders of record will be notified of the estimated return of capital for each distribution. Please click here for more information.

6.61 Distribution frequency Quarterly

Distributions
Data as of 12/31/22
Record date Ex-Date Pay Date Total Distribution Income ST Gain LT Gain Return of Capital
12/28/2022 12/27/2022 12/29/2022 $0.09602 $0.09602 $0.00000 $0.00000 $0.00000
09/27/2022 09/27/2022 09/29/2022 $0.14790 $0.14061 $0.00000 $0.00000 $0.00000
06/28/2022 06/27/2022 06/29/2022 $0.14790 $0.14790 $0.00000 $0.00000 $0.00000
02/25/2022 02/28/2022 02/28/2022 $0.20039 $0.04820 $0.01209 $0.14010 —

12/29/2021 12/30/2021 12/30/2021 $0.19312 $0.11366 $0.03216 $0.04730 —
09/29/2021 09/30/2021 09/30/2021 $0.20876 $0.09200 $0.11676 — —
06/29/2021 06/30/2021 06/30/2021 $0.19940 $0.08956 $0.10984 — —
03/30/2021 03/31/2021 03/31/2021 $0.18966 $0.09899 $0.09067 — —
12/29/2020 12/30/2020 12/30/2020 $0.09819 $0.09819 — — —
09/28/2020 09/29/2020 09/29/2020 $0.10554 $0.10554 — — —
06/26/2020 06/29/2020 06/29/2020 $0.11131 $0.11131 — — —
03/27/2020 03/30/2020 03/30/2020 $0.09881 $0.09881 — — —
12/30/2019 12/31/2019 12/31/2019 $0.20994 $0.09366 $0.11628 — —
09/27/2019 09/30/2019 09/30/2019 $0.16598 $0.10536 — — $0.06062
06/27/2019 06/28/2019 06/28/2019 $0.09408 $0.07431 — — $0.01977
03/28/2019 03/29/2019 03/29/2019 $0.11456 $0.11456 — — —

Show More

All fund distributions will vary depending on the current market conditions, and past distributions are not indicative of future trends.

To receive a distribution, you may have been a registered shareholder of the fund on the record date. Distributions were paid to shareholders on the payment date. Please consult your tax professional or financial adviser for more information regarding your tax situation.

Prior to the listing date, the ETF operated as a mutual fund. Distribution information shown prior to the ETF listing date is of the predecessor mutual fund.

DOCUMENTS
12/31/2022 Preferred-Plus ETF Fact Sheet Download
01/31/2023 Preferred-Plus ETF Summary Prospectus Download
01/31/2023 Preferred-Plus ETF Prospectus Download
01/31/2023 Preferred-Plus ETF SAI Download
09/30/2022 Preferred-Plus ETF Annual Report Download
03/31/2022 Preferred-Plus ETF Semi-Annual Report Download
06/30/2022 Preferred Plus ETF SOI Download
12/31/2021 Preferred-Plus ETF SOI Download
12/31/2022 Supplemental Tax Information View

Prior to listing date, the ETF operated as a mutual fund. The annual report, semi-annual report, and schedules of investments (holdings) of the predecessor mutual fund are shown for periods prior to the ETF listing date.

Potential Benefits

Diversification from traditional equity and fixed-income strategies.

Seeks potential income from higher-yielding preferred stocks, some of which may be U.S. tax-advantaged.

Additional income can be anticipated through option premiums.

Active management to potentially exploit inefficiencies such as credit quality, interest rate structure, and call risk.


Portfolio Construction

1ST | Macro Outlook

Develop opinions about the economy, markets, and interest rates.

2ND | Screen

Exchange-traded preferred securities for yield, duration, liquidity, credit quality, and structure.

3RD | Decision

Select from the screened holdings based on pricing and attractive opportunities, which can include undervalued sectors and/or companies.

4TH | Options

Create a put credit spread position on an S&P 500 ETF or Index which involves the selling of the put option with the purchase of a put option with the same expiration.

IPPP

Data as of 02/07/2023

Ticker IPPP
Exchange Cboe BZX Exchange

CUSIP 53656F219
Total Net Assets $13,579,855.19
Shares Outstanding 1,347,107
NAV per Share $10.08

Distribution Frequency Quarterly
Expense Ratio 0.85%

Asset Class U.S. Equity
Fund Type Active
Inception Date 12/24/2018
Listing Date 03/07/2022
Download Fact Sheet

Overall ratings based on risk-adjusted returns among 63 funds in the U.S. Preferred Stock category for the 3-year period ending 12/31/22.

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Questions? Connect with our IPPP investment team for more details.

Innovative Portfolios, LLC is investment advisor to Preferred-Plus ETF.

Carefully consider the Fund’s investment objective, risk factors, charges and expenses before investing. This and additional information can be found in the Preferred-Plus ETF prospectus, which can be obtained by calling 800-617-0004 or clicking here. Please read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Derivative Securities Risk: The Fund invests in options that derive their performance from the performance of the S&P 500 Index. Derivatives, such as the options in which the Fund invests, can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in a derivative could have a substantial impact on the performance of the Fund. The Fund could experience a loss if its derivatives do not perform as anticipated, or are not correlated with the performance of their underlying asset or if the Fund is unable to purchase or liquidate a position because of an illiquid secondary market. The market for many derivatives is, or suddenly can become, illiquid. Changes in liquidity may result in significant, rapid, and unpredictable changes in the prices for derivatives.

Preferred Securities Risk: Preferred securities generally are subordinated to bonds and other debt instruments in a company’s capital structure and therefore will be subject to greater credit risk than those debt instruments. In addition, but not limited to, preferred securities are subject to other risks, such as being called by the issuer before its stated maturity, subject to special redemption rights, having distributions deferred or skipped, rising interest rates causing the value to decline, having floating interest rates or dividends, and having limited liquidity. Preferred securities that do not have a maturity date are perpetual investments.

© 2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar RatingTM for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Preferred-Plus fund received two stars among 63 funds in the U.S. Preferred Stock category for the overall and three-year periods ending December 31, 2022. The inception for the Preferred-Plus fund is December 24, 2018 and, as such there is no performance for the 5- and 10-year periods. Past performance is no guarantee of future results.

Preferred-Plus ETF is distributed by Foreside Fund Services, LLC.

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Disclosures
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info@innovativeportfolios.com

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