At a glance
EPRF charges 0.47% a year, above the 0.37% average of the 2 funds most like it (the 2nd cheapest of 3). It has $68.2M in assets, the 3rd largest of that group; it paid 6.87% of its price in distributions over the past 12 months, monthly. Over the past year it returned −9.1% with distributions reinvested (S&P 500: +11.5%), 2nd of those 3 funds; over three years it returned +3.8% a year. At its worst it fell 26.4% in the 2020 crash (S&P 500: 33.7%) and 20.6% in the 2022 bear market (S&P 500: 24.5%). Its ten largest positions make up 39.0% of the fund, out of 79 in all.
The short version
Innovator S&P Investment Grade Preferred ETF (EPRF) tracks the S&P U.S. High Quality Preferred Stock Index. The index holds investment-grade preferred stocks, mostly from asset managers, banks and insurers. Larger rivals don't do what EPRF does: it gives each issuer an equal weight, so no single company dominates. Its trailing yield was 6.87% as of October 27, 2026, paid monthly. But its 0.47% yearly cost is about double PFFD's 0.23%.
Price history
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EPRF -9.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EPRF official prospectus, to Dec 31, 2024 | — | +2.69% | — | -1.23% | — | +1.75% |
| EPRF price data to Oct 27, 2026 | -7.0% | -9.1% | +3.8% | -3.1% | — | +0.7% |
- Over the year to Oct 27, 2026, EPRF returned -9.1%, 2nd of 3 among similar funds.
- Its 5-year annualized return was -3.1%.
- In the 2020 COVID crash it fell 26.4% and regained its old high 4.1 months after the low.
- Its worst full calendar year was 2022 (-20.7%); its best was 2019 (+19.8%).
- The deepest fall in its price history was 26.8% (Feb 12, 2020 to Mar 18, 2020), recovered by Jul 29, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -7.0% | — |
| 2025 | +2.8% | +2.69% |
| 2024 | +3.4% | +3.85% |
| 2023 | +9.8% | +9.62% |
| 2022 | -20.7% | -20.96% |
| 2021 | +1.4% | +1.74% |
| 2020 | +7.4% | +7.41% |
| 2019 | +19.8% | +18.85% |
| 2018 | -5.3% | -5.24% |
| 2017 | — | +9.22% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 25.2% over that stretch · deepest drop along the way 26.4%, back to its old high 4.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.6% over that stretch · deepest drop along the way 20.6%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8100 | |
| 2025 | $1.0700 | -3.6% |
| 2024 | $1.1100 | -0.9% |
| 2023 | $1.1200 | +9.8% |
| 2022 | $1.0200 | -10.5% |
| 2021 | $1.1400 | -7.3% |
| 2020 | $1.2300 | -3.1% |
| 2019 | $1.2700 | +6.4% |
| 2018 | $1.1931 |
What's inside
As of Jul 31, 2026, the fund held 79 securities; the ten largest made up 39% of assets, and 7.79% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| ARES MANAGEMENT CORP Preferred stock | 4.26% | |
| KKR & CO INC Preferred stock | 4.14% | |
| Apollo Global Management Inc | 3.97% | |
| VOYA FINANCIAL INC Preferred stock | 3.86% | |
| CULLEN/FROST BANKERS INC Preferred stock | 3.82% | |
| AGREE REALTY CORP Preferred stock | 3.81% | |
| UMB FINANCIAL CORP Preferred stock | 3.80% | |
| HARTFORD INSUR GRP INC/T Preferred stock | 3.80% | |
| AXIS CAPITAL HLDGS LTD Preferred stock | 3.78% | |
| BANK OF NY MELLON CORP Preferred stock | 3.76% | |
| STATE STREET CORP Preferred stock | 3.75% | |
| NORTHERN TRUST CORP Preferred stock | 3.75% | |
| ARCH CAPITAL GROUP LTD Preferred stock | 1.94% | |
| RENAISSANCERE HOLDINGS L Preferred stock | 1.93% | |
| RENAISSANCERE HOLDINGS L Preferred stock | 1.92% |
By country
United States 84.29%Bermuda 15.39%By asset type
Preferred stock 95.7%Stocks 3.97%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $1.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.47%, -1.81%, +1.04%.
How it works
EPRF is an index fund. Before fees, it aims to match the price and yield of the S&P U.S. High Quality Preferred Stock Index, and it normally keeps at least 90% of its assets in the index's securities. Preferred stock is a hybrid of a stock and a bond. It pays a set dividend and ranks ahead of common stock if a company fails, but behind bonds. Innovator sponsors the fund, Penserra Capital Management manages the trading, and S&P Dow Jones Indices builds the index.
Only investment-grade preferreds qualify, meaning a credit rating of BBB- (Baa3 at Moody's) or better. When more than one agency rates an issue, the lower rating counts. Holdings can still sit on the lowest rung of investment grade. To join the index, an issue must trade on a U.S. exchange, have a market value of at least $100 million and trade more than 250,000 shares a month.
The index gives each company the same weight, then splits that weight across the company's eligible issues. That is why RenaissanceRe's two issues each held about 1.9% as of July 31, 2026, while single-issue companies such as Ares Management and KKR held about 4%. The index rebalances every quarter. It is concentrated in financials. It also holds preferreds from equity REITs (real estate investment trusts that own property), such as Agree Realty.
What it really costs
- EPRF charges 0.47% a year, versus an average of 0.37% for the similar funds below (2nd of 3, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $48 in the first year and $591 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EPRF | $48 | $151 | $263 | $591 |
In a retirement portfolio
Its main draw is a monthly payout from investment-grade preferred stocks, not growth or stability.
EPRF could add monthly income: its trailing 12-month yield was 6.87% as of October 27, 2026. The trade-off is interest-rate risk, because preferreds behave like long-term bonds. The fund lost 20.96% in 2022, its worst calendar year, and had not recovered from that drop as of October 27, 2026. In the 2020 COVID crash it fell about 26% in under a month, then took about four months to recover. Its price history starts in 2017, so it doesn't show how the fund would have done in the 2008 crisis. A retiree forced to sell shares in 2022 would have locked in a steep loss. Costs are above average: 0.47% a year versus a 0.37% peer average, or about $48 in the first year on $10,000 in the SEC's standard example. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from investment-grade preferreds; the trailing yield was 6.87% as of October 27, 2026.
- Investors who like equal weighting by issuer, so no one company dominates; the top 10 holdings were 39% as of July 31, 2026.
- People comfortable with heavy exposure to financials: asset managers, regional and custody banks, and insurers, including Bermuda-based reinsurers.
Look elsewhere if
- Cost-focused investors: PFFD charges 0.23% versus EPRF's 0.47%, and it returned more over three years as of October 27, 2026.
- Anyone who may need to sell during a rate-driven downturn; EPRF fell 20.96% in 2022 and had not recovered by October 27, 2026.
- Investors who want a large fund: EPRF had about $68 million in net assets, while PFFD and PGX each held billions.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Does EPRF pay monthly dividends?
Yes. EPRF pays distributions monthly. Over the 12 months to October 27, 2026, it paid about $1.07 per share, a trailing yield of 6.87%. That figure reflects past payments, not a promise. Companies can cut or suspend preferred dividends, and the fund's payout can change as the index rebalances each quarter. Payouts are also reduced by the fund's 0.47% annual expense ratio.
What's the difference between EPRF and PFFD?
Both hold U.S.-listed preferred stocks, and about 25% of their holdings overlap. EPRF holds only investment-grade issues and weights each issuer equally. PFFD (Global X U.S. Preferred ETF) is much cheaper, at 0.23% a year versus 0.47%. It is also much larger, with about $2.15 billion in net assets against EPRF's $68 million. As of October 27, 2026, PFFD returned −6.2% over one year and 5.8% a year over three years. EPRF returned −9.1% and 3.8%.
Is EPRF good for retirement income?
It can provide monthly income, but its price can swing more than many retirees expect. The trailing yield was 6.87% as of October 27, 2026. But the fund lost 20.96% in 2022 and had not recovered from that drop by October 27, 2026. Its price return over five years averaged −3.1% a year. It may suit people who hold it as one income source in a broader mix, not as a stand-in for bonds or cash.
Why did EPRF drop so much in 2022?
Mainly because interest rates rose quickly. Preferred stocks pay fixed dividends and often have no maturity date, so they act like very long-term bonds. When new securities offer higher yields, older ones lose value. EPRF lost 20.96% in calendar 2022 and fell 20.6% from January 3 to October 12, 2022. Investment-grade credit quality lowers default risk, but it doesn't protect against interest-rate risk.
What are EPRF's top holdings?
As of July 31, 2026, the largest positions were Ares Management (4.3%), KKR (4.1%), Apollo Global Management (4.0%, classified as common stock), Voya Financial (3.9%) and Cullen/Frost Bankers (3.8%). The fund had 79 holdings, and the top 10 made up 39% of assets. About 15% was in Bermuda-based companies, including the insurers Axis Capital, Arch Capital and RenaissanceRe. Cash was 7.8% of assets.