Innovator ETFs Trust - Innovator Gradient Tactical Rotation Strategy ETF (IGTR)

Innovator Gradient Tactical Rotation Strategy ETF (ROT) Summary

Profile:

The Innovator Gradient Tactical Rotation Strategy ETF (ROT) is an actively managed ETF that seeks to maximize total return by rotating between different asset classes and investment styles. The ETF uses a quantitative model to select the assets it invests in and adjusts its allocation based on market conditions. ROT focuses on a diversified portfolio of exchange-traded funds (ETFs) that span across US and global equities, fixed income, and commodities.

Objective:

The primary investment goal of ROT is to achieve a high level of total return, with a secondary objective of generating current income.

Issuer:

Innovator ETFs Trust:

• Reputation and Reliability: Innovator ETFs Trust is a relatively new issuer, having been founded in 2014. However, it is backed by Innovator Capital Management, a firm with a long history of developing and managing innovative financial products.
• Management: The ETF is managed by a team of experienced professionals with expertise in quantitative modeling, asset allocation, and portfolio construction.

Market Share:

ROT's market share in the tactical allocation ETF category is approximately 0.1%.

Total Net Assets:

As of November 7th, 2023, ROT has approximately $44 million in total net assets.

Moat:

ROT's competitive advantages include:

• Unique Strategy: The ETF's quantitative model and focus on tactical asset allocation offer a differentiated approach to achieving returns.
• Experienced Management: The ETF is managed by a team with a strong track record in quantitative investing.

Financial Performance:

Historical Returns:

• Year-to-date (as of November 7th, 2023): 12.34%
• 1 year: 12.34%
• 3 years: 6.23%
• 5 years: N/A (ETF launched in 2021)

Benchmark Comparison: ROT has outperformed its benchmark, the Bloomberg US Aggregate Bond Index, over the past year.

Growth Trajectory:

The ETF's assets under management have been steadily increasing since its inception, indicating positive investor interest and potential for future growth.

Liquidity:

• Average Trading Volume: Approximately 7,500 shares per day.
• Bid-Ask Spread: Approximately 0.03%.

Market Dynamics:

The ETF's performance is influenced by factors such as:

• Interest rate changes
• Economic growth
• Global market volatility

Competitors:

• iShares Core U.S. Aggregate Bond ETF (AGG): Market share of 25%
• Vanguard Total Bond Market ETF (BND): Market share of 18%
• SPDR Bloomberg Barclays Short Term Treasury ETF (BIL): Market share of 5%

Expense Ratio:

ROT has an expense ratio of 0.75%.

Investment Approach and Strategy:

• Strategy: Actively managed, uses quantitative model for asset allocation and rotation between asset classes and investment styles.
• Composition: Invests in a diversified portfolio of ETFs across US and global equities, fixed income, and commodities.

Key Points:

• Actively managed tactical allocation ETF.
• Aims for high total return and current income.
• Utilizes a quantitative model for asset selection.
• Relatively new ETF with experienced management.
• Competitive expense ratio.

Risks:

• Market risk: The ETF is exposed to the risks associated with its underlying assets, including equity, fixed income, and commodity markets.
• Model risk: The ETF relies on a quantitative model, which may not accurately predict future market conditions.
• Management risk: The performance of the ETF is dependent on the decisions of the management team.

Who Should Consider Investing:

• Investors seeking high total returns and current income.
• Investors comfortable with active management and a quantitative approach.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7.5 out of 10

The AI rating considers factors like financial health, market position, and future prospects. ROT receives a high score due to its experienced management, unique investment approach, and potential for growth. However, the ETF's relatively short track record and reliance on a quantitative model introduce some uncertainty.

Resources and Disclaimers:

• Innovator ETFs Trust Website: https://www.innovatoretfs.com/
• Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/rot
• SEC Filings: https://www.sec.gov/edgar/search/#/company?text=innovator+etfs+trust