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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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.
Source: Bloomberg. Data reflects calendar year 2008
| Weighted Average Coupon | 5.4% |
| Weighted Average Duration | 13.5 Years |
| Weighted Average % of Par | 86.4% |
| % Qualified Dividend Income (QDI) | 82.4% |
| Weighted Average Credit Rating | BBB |
| Fixed | 86.5% |
| Variable | 9.5% |
| Floating | 4.1% |
In a low-yield environment, preferreds may be one of the few asset classes still providing a meaningful source of income.
Complement existing preferred exposure by adding EPRF to potentially improve overall preferred credit quality.
Investors can maintain an investment grade portfolio while seeking to increase yield through EPRF.
EPRF currently exhibits an attractive yield while maintaining 100.0% exposure to investment grade preferred stock, with significant exposure to QDI-preferreds. 1
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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