INDIANAPOLIS, March 7, 2022 /PRNewswire/ — Innovative Portfolios, LLC, today has announced the conversion of two mutual funds to ETFs. The two ETFs—Dividend Performers Fund (IPDP) and Preferred-Plus Fund (IPPP)—have attractive 3-year track records and performance rankings in their Morningstar categories. The two ETFs are listed on Cboe BZX Exchange.
“As our investors’ interests are a top priority, we recognize the benefits in converting our mutual funds to actively managed ETFs,” said Dave Gilreath, Managing Director and Chief Investment Officer of Innovative Portfolios. “Exchange-traded funds offer greater transparency, tax efficiency, and lower fees for investors who are looking to add potential for greater income generation.”
The Dividend Performers ETF (IPDP) is comprised of primarily large-capitalization common stocks of dividend-paying U.S. companies, while utilizing an option overlay strategy that strives to enhance overall distributions to shareholders.
The Preferred-Plus ETF (IPPP) invests in U.S. preferred stocks with the goal of offering income. The strategy also includes an option overlay feature that seeks to provide incremental income to investors.
Ron Brock, Managing Director and Chief Financial Officer of Innovative Portfolios, added, “Along with the benefits that Dave highlighted, investors may also enjoy the benefit of greater access and availability with these ETFs than was previously available in the mutual fund structure.”
Innovative Portfolios is an investment advisor and money manager backed by the knowledge and resources of an experienced money management team that focuses on institutional-level money management strategies. By employing option-based overlay portfolio strategies and diversified underlying portfolios, Innovative Portfolios makes this type of strategy available to retail investors.
“Through these conversions, investors will be able to access Innovative Portfolios’ proven investment strategies in a more flexible and cost-efficient vehicle,” said Laura Morison, Global Head of Listings at Cboe Global Markets. “Cboe is pleased to support another mutual fund-to-ETF conversion in the industry and work with Innovative Portfolios to bring the many benefits of ETFs to their shareholders.”
Cboe BZX Exchange is a premier marketplace for exchange-traded products (ETPs) globally, and the fastest-growing ETP exchange with more than 600 ETPs listed from over 60 issuers around the world.
About Innovative Portfolios, LLC:
Based in Indianapolis, Indiana, Innovative Portfolios provides strategic investment solutions to RIAs and institutional clients, with sales team members located throughout the United States. Innovative Portfolios Principal Dave Gilreath is a contributor of investment commentary to CNBC.com, FA Financial Advisor, Fox Business, and TD Ameritrade Network. Visit innovativeportfolios.com for more information.
About Cboe Global Markets, Inc.:
Cboe Global Markets (Cboe: CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. To learn more, visit cboe.com.
Innovative Portfolios, LLC is investment advisor to Dividend Performers ETF and 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 Dividend Performers ETF prospectus, which can be obtained by calling 800-617-0004 or by visiting innovativeportfolios.com. Please read the prospectus carefully before investing. Dividend Performers ETF and Preferred-Plus ETF are distributed by Foreside Fund Services, LLC.
The Funds involve a high degree of risk. An investment in the Funds should be viewed only as part of an overall investment program, and you should invest only if you can sustain a complete loss of your principal.
The performance data quoted represents past performance; past performance does not guarantee future results. Prior to listing date, the ETFs operated as mutual funds. The NAVs of the predecessor mutual fund are used for performance and Morningstar rankings from inception to listing. Investing in the Funds involves risk. The Funds may invest in options. All investment strategies carry risk, and transactions in options may carry a high degree of risk. Investors should carefully consider a Fund’s risks and investment objectives as an investment in a Fund may not be appropriate for all investors and is not designed to be a complete investment program. Before making an investment/allocation decision, investors and registered investment advisers (RIAs) allocating to clients’ account should consider the suitability of this investment with respect to such investor’s or client’s net worth, income, age, and risk tolerance. Investment should be avoided where an investor has a short-term investing time horizon and/or cannot bear the loss of some or all of their investment.
IPDP Specific Risks Dividend Paying Security Risk: Securities that pay high dividends as a group can fall out of favor with the market, causing these companies to underperform companies that do not pay high dividends. Also, companies owned by the Fund that have historically paid a dividend may reduce or discontinue their dividends, thus reducing the yield of the Fund. Investment in real estate companies, including REITs, exposes the Fund to the risks of owning real estate directly. Real estate is highly sensitive to general and local economic conditions and developments.
IPPP Specific Risks Preferred Security 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.
Dividend Performers ranked 1st out of 95 funds in Morningstar’s category of U.S. Fund Options Trading and 1st out of 84 funds in the same category, based on total return for the one- and three-year periods, respectively, ending 12/31/21.
Preferred-Plus ranked 11th out of 51 funds and 1st out of 50 funds in Morningstar’s U.S. Fund Preferred Stock category for the one- and three-year periods, respectively, ending 12/31/21, based on total return.
©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.
Dividend Performers and Preferred-Plus ETFs are distributed by Foreside Fund Services, LLC.
SOURCE Innovative Portfolios