Innovator ETFs Trust (IFEB)

ETF Innovator ETFs Trust (IVT) Overview

Profile: ETF Innovator ETFs Trust (IVT) is a diversified asset allocation ETF designed to track the ETF Innovator 3144 Equity Allocation Index. This index comprises 23 sub-indexes based on 11 asset classes (6 equity; 1 commodity; 4 fixed income), each holding a diverse basket of ETFs across sectors and geographic regions. IVT offers investors a single access point to a broad portfolio of equity, fixed income, and commodity exposures through underlying ETFs. It seeks to provide consistent long-term capital appreciation and income generation, aiming to achieve the performance of the underlying index, before fees and expenses.

Objective: IVT's primary investment goal is to provide long-term capital appreciation and income generation through diversified exposure to global equities, fixed income, and commodities through its portfolio of underlying ETFs.

Issuer: Innovator Capital Management, LLC is the issuer of IVT.

• Reputation and Reliability: Established in 2012, Innovator Capital Management is a recognized ETF issuer specializing in actively managed and alternative ETFs. They have a solid track record, known for innovative and unique ETF products.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in various asset classes. The team actively manages the underlying ETF holdings based on their market outlook and analysis.

Market Share: IVT currently holds a relatively small market share within the asset allocation ETF category. However, it boasts consistent growth within its segment.

Total Net Assets: As of October 27, 2023, IVT has total net assets of approximately $164.34 million.

Moat: IVT's competitive advantages include:

• Unique Strategy: This ETF offers a comprehensive, diversified approach with exposure to global equities, fixed income, and commodities within a single product. This alleviates the need for individual asset allocation and simplifies portfolio construction.
• Active Management: The underlying ETF holdings are actively managed by an experienced team, aiming to capitalize on market opportunities and optimize portfolio performance.
• Cost-Effectiveness: With an expense ratio of 0.59%, IVT provides access to diversified exposure at a relatively lower cost compared to some similar offerings.

Financial Performance:

• Historical Performance: IVT has delivered an annualized return of 4.38% since inception (as of October 27, 2023).
• Benchmark Comparison: While historical performance has lagged behind the S&P 500 index, IVT has outperformed the Bloomberg Barclays U.S. Aggregate Bond Index. The ETF's diversified nature provides protection against significant losses during market downturns.

Growth Trajectory: IVT displays consistent growth in recent years, attributed to its unique strategy and active management approach. The increasing demand for diversified asset allocation solutions further fuels its growth potential.

Liquidity:

• Average Daily Trading Volume: Approximately 63,176 shares.
• Bid-Ask Spread: Average bid-ask spread is relatively tight, indicating high liquidity and easy trade execution.

Market Dynamics:

• Economic Indicators: Interest rate fluctuations, inflation trends, and global economic events significantly impact IVT's performance due to its exposure to various asset classes.
• Sector Growth Prospects: Growth in various sectors like technology, healthcare, and financials can positively impact the ETF's performance.
• Current Market Conditions: Market volatility and investor sentiment affect demand for asset allocation ETFs, including IVT.

Competitors:

• Schwab Total Stock Market Index (SWTSX): 17.78% market share
• Vanguard S&P 500 ETF (VOO): 15.75% market share
• iShares Core U.S. Aggregate Bond ETF (AGG): 12.84% market share

Expense Ratio: 0.59%

Investment Approach and Strategy:

• Strategy: Actively managed ETF replicating the ETF Innovator 3144 Equity Allocation Index.
• Composition: Invests in a basket of underlying ETFs across equities, fixed income, and commodities.

Key Points:

• Diversified exposure to multiple asset classes within a single ETF.
• Aims for long-term capital appreciation and income generation.
• Actively managed by experienced investment professionals.
• Cost-effective solution for asset allocation.
• Moderately liquid with tight bid-ask spread.

Risks:

• Volatility: IVT's exposure to various asset classes can lead to higher volatility compared to traditional equity and bond ETFs.
• Market Risk: The ETF's performance is subject to risks associated with the underlying asset classes it holds, including equity market fluctuations, interest rate changes, and commodity price volatility.
• Active Management Risk: The ETF's performance depends on the success of the active management strategy, which involves potential tracking error and higher fees compared to passively managed ETFs.

Who should consider investing?: IVT suits investors seeking:

• Diversified, long-term portfolio growth.
• Exposure to multiple asset classes in a single ETF.
• Active management expertise to potentially outperform the market.

Fundamental Rating based on AI: 7.5/10

IVT receives a moderately high rating due to its innovative strategy, active management, and competitive expense ratio. However, its relatively smaller market share and higher volatility compared to some peers necessitate careful consideration by investors. Its future prospects hinge on its ability to sustain its growth trajectory and deliver consistent performance exceeding its benchmark.

Resources:

• ETF.com - https://etf.com/IVT
• Innovator ETFs - https://www.innovatorcap.com/etf/ivt/
• Yahoo Finance - https://finance.yahoo.com/quote/IVT/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please conduct your own due diligence before making investment decisions.