At a glance
IPPP charges 1.02% a year, above the 0.66% average of the 2 funds most like it (the most expensive of 3). It has $11.9M in assets, the 3rd largest of that group. Over the past year it returned +0.0% with distributions reinvested (S&P 500: +11.5%), the best of those 3 funds; over three years it returned +9.1% a year. Its ten largest positions make up 17.2% of the fund, out of 100 in all.
The short version
Preferred-Plus ETF (IPPP) is an actively managed fund that holds mostly preferred stock, a stock-bond hybrid that pays regular dividends, issued largely by banks and other financial companies. It adds a small monthly S&P 500 put-option strategy meant to earn extra income. It is tiny, with $11.9 million in net assets as of June 30, 2025, and costs 1.02% a year, more than similar funds PFF (0.46%) and FPE (0.85%).
Price history
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IPPP 0.0% 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 | |
|---|---|---|---|---|---|---|
| IPPP price data to Oct 27, 2026 | 0.0% | 0.0% | +9.1% | — | — | +2.5% |
- Over the year to Oct 27, 2026, IPPP returned 0.0%, 1st of 3 among similar funds.
- Its worst full calendar year was 2025 (+4.2%); its best was 2023 (+14.6%).
- The deepest fall in its price history was 22.2% (Mar 31, 2022 to Mar 13, 2023), recovered by Jul 3, 2024.
Show as a table
| Year | Price data |
|---|---|
| 2025 | +4.2% |
| 2024 | +10.2% |
| 2023 | +14.6% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.2900 | -47.3% |
| 2024 | $0.5500 | +1.9% |
| 2023 | $0.5400 |
What's inside
As of Jun 30, 2025, the fund held 100 securities; the ten largest made up 17.23% of assets.
| Holding | Weight | |
|---|---|---|
| SYNOVUS FINANCIAL CORP Preferred stock | 2.16% | |
| ATHENE HOLDING LTD Preferred stock | 2.07% | |
| KEYCORP Preferred stock | 1.86% | |
| BANC OF CALIFORNIA INC Preferred stock | 1.76% | |
| JPMORGAN CHASE & CO Preferred stock | 1.69% | |
| SYNCHRONY FINANCIAL Preferred stock | 1.57% | |
| BANK OF AMERICA CORP Preferred stock | 1.55% | |
| JACKSON FINANCIAL INC Preferred stock | 1.55% | |
| AMERICAN NATIONAL GROUP Preferred stock | 1.51% | |
| AGNC INVESTMENT CORP Preferred stock | 1.51% | |
| MORGAN STANLEY Preferred stock | 1.43% | |
| WESTERN ALLIANCE BANCORP Preferred stock | 1.38% | |
| DIGITAL REALTY TRUST INC Preferred stock | 1.34% | |
| WINTRUST FINANCIAL CORP Preferred stock | 1.33% | |
| ALGONQUIN PWR & UTILITY Preferred stock | 1.32% |
By country
United States 92.3%Canada 2.72%Bermuda 2.51%By asset type
Preferred stock 97.54%What changed recently
- Over the three months to Jun 30, 2025, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.25%, +1.85%, +1.52%.
How it works
IPPP is actively managed, not tied to an index. Its adviser, Innovative Portfolios, LLC, picks preferred securities (stock-bond hybrids that pay regular dividends) it considers undervalued, weighing each issuer's creditworthiness, where the security ranks in the company's capital structure, and features such as call (early redemption) rights. At least 80% of net assets go into preferreds, and more than 25% into the financial sector; as of the prospectus date, that meant banks.
It may own junk (below-investment-grade) and unrated securities, but aims for an average issuer senior debt rating of at least BBB-, the lowest investment-grade rating, and won't purchase anything rated below B-. As of June 30, 2025, it held about 100 securities, none above 2.2% of assets.
The fund also keeps about 10% of assets exposed to a monthly options trade on the S&P 500 or an S&P 500 ETF. It writes a put option, agreeing to cover index losses below a set 'strike' price in return for an upfront premium, and purchases a cheaper put with a lower strike. If the index stays above the higher strike, the fund keeps the net premium; if not, it pays the shortfall, with the lower put capping the loss. It is betting option prices usually overstate actual market swings; the prospectus says that isn't assured.
What it really costs
- IPPP charges 1.02% a year, versus an average of 0.66% for the similar funds below (3rd of 3, cheapest first).
- Of that, 0.85% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $104 in the first year and $1,248 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IPPP | $104 | $325 | $563 | $1,248 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
It aims for income, but bank-heavy preferreds, an S&P 500 options overlay, a 1.02% fee and $11.9 million in net assets as of June 30, 2025 point to a small, niche position rather than a core income source.
IPPP aims for income from financial-company preferreds and S&P 500 option premiums. Its price history starts in March 2022, after the 2022 bear market began, so 2008 isn't covered; its prospectus, which reaches back further, shows a 19.85% loss in the first quarter of 2020, during the COVID crash. Its deepest drop, 22.2%, ran from March 31, 2022 to March 13, 2023; it recovered about 16 months after that low. Its weakest full calendar year, 2025, still gained 4.2%. Withdrawing in such slumps means cashing out at depressed prices.
No distributions were recorded in the year ended October 27, 2026, unusual for an income fund and worth confirming. It costs 1.02% a year versus a 0.66% average for similar funds, or $1,248 over 10 years on $10,000 in the SEC's standard example. Past results don't predict future ones; a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking income from preferred stock plus a small monthly S&P 500 put-spread strategy, run by an active manager rather than an index.
- Those comfortable with heavy exposure to bank and financial preferreds, led by Synovus, Athene, KeyCorp and Banc of California as of June 30, 2025.
- Investors able to ride out drops like its 22.2% fall from March 2022 to March 2023, recouped about 16 months later.
Look elsewhere if
- Cost-conscious investors: the 1.02% expense ratio is above FPE's 0.85% and more than double PFF's 0.46%.
- Anyone relying on steady payouts: no distributions were recorded in the year ended October 27, 2026, despite the fund's income objective.
- Investors who prefer larger funds: net assets were $11.9 million as of June 30, 2025, and tiny ETFs can face wider bid-ask spreads or closure.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does IPPP invest in?
Mostly preferred stock, concentrated in banks and other financial companies. Preferred stock pays regular dividends ahead of common stock but ranks behind bonds if the company fails. As of June 30, 2025, preferreds made up 97.5% of assets across about 100 securities, led by Synovus Financial (2.2%), Athene Holding (2.1%), KeyCorp (1.9%), Banc of California (1.8%) and JPMorgan Chase (1.7%). The 10 largest totaled 17.2%. A small monthly S&P 500 put-option strategy rounds out the portfolio.
Does IPPP pay monthly dividends?
Not in the year ended October 27, 2026. No distributions were recorded over that period, so its trailing yield was 0% on that date, even though the fund's stated objective is income. That is unusual for a preferred-stock fund, and the fund's own distribution notices are worth checking for its payment schedule. Its income is meant to come from preferred dividends and the net premiums from its monthly S&P 500 options trades.
What's the difference between IPPP and PFF?
They differ mainly in cost, size and approach. IPPP charges 1.02% a year, versus 0.46% for iShares Preferred & Income Securities ETF (PFF). IPPP had $11.9 million in net assets as of June 30, 2025; PFF had $13.1 billion as of June 30, 2026. IPPP is actively managed and adds an S&P 500 put-option strategy. Of similar funds, PFF overlaps most with IPPP's holdings, though modestly. IPPP's three-year price-based return was 9.1% a year to October 27, 2026, versus 6.3% for PFF to October 30, 2026.
How does IPPP's options strategy work?
It runs a monthly 'credit spread' on the S&P 500 or an S&P 500 ETF, with roughly 10% of assets exposed. The fund writes a put option, which pays its holder if the index falls below a set strike price, and collects a premium. It also purchases a lower-strike put as protection. If the index stays above the higher strike, the fund keeps the net premium; in a sharp drop it owes the shortfall, capped by the lower put. Those losses could coincide with falling preferred prices.
What is IPPP's expense ratio?
IPPP's expense ratio, the yearly fee taken from fund assets, is 1.02%, including a 0.85% management fee, according to its prospectus filed January 27, 2025. That is above the 0.66% average for similar funds and above FPE's 0.85% and PFF's 0.46%. In the SEC's standard example, which assumes $10,000 invested, a 5% yearly return and cashing out at the end of each period, costs would total $104 after one year, $325 after three, $563 after five and $1,248 after ten.