Though major indexes like the S&P 500 and Dow Jones Industrial Average recently reached new highs, they’re still susceptible to fluctuations from trade war news. As such, it’s necessary to mute the volatility and capture upside with funds like Innovator Capital Management’s Innovator Lunt Low Vol/High Beta Tactical ETF (LVHB).
LVHB received a Morningstar 5-Star rating based on the risk-adjusted returns of 1,114 Funds in the US Large Value category, for the three-year period ended October 31, 2019. LVHB is ranked in the top one percentile out 1,149 Funds in the US Large Value category with a one-year return of 22.17% (NAV), and has a three-year annualized return of 15.52% (NAV) through October 31, 2019.1 LVHB returned 25.29% (NAV) year to date.
“We are pleased to celebrate the Innovator Lunt Low Vol/High Beta Tactical ETF (LVHB) three-year anniversary achieving a Morningstar 5-Star rating,” said Graham Day, CFA and VP of product & research at Innovator Capital Management. “LVHB utilizes a simple rules-based strategy to select either the 100 lowest volatility or 100 highest beta stocks from the S&P 500 Index, based on risk-adjusted momentum. We believe LVHB has proven to be a compelling alternative to higher cost actively-managed strategies.”
| LVHB Performance vs S&P 500 | YTD | 1 Year | 3 year | Inception |
| LVHB ETF NAV | 25.29% | 22.17% | 15.52% | 14.78% |
| S&P 500 Total Return Index | 23.16% | 14.33% | 14.91% | 14.42% |
Source: US Bank. Data as of 10/31/2019. LVHB’s inception date is 10/20/16. Performance quoted represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Returns less than one year are cumulative. The most recent month-end performance can be found at www.innovatoretfs.com. One cannot invest directly in an index.
“We believe factor rotation offers the opportunity for outperformance as the low volatility and high beta factors move in and out of favor,” said John Lunt, President of Lunt Capital. “The Lunt Capital U.S. Large Cap Equity Rotation Index uses a rules-based factor rotation methodology. This strategy answers one of the major questions asked by investors—Which factor should I invest in right now? We believe the initial three-year performance for LVHB demonstrates the value of incorporating this strategy into U.S. Large Cap allocations.”
LVHB Risk & Volatility vs Morningstar Category Average.
| Since Inception | Innovator Lunt Low Vol/High Beta Tactical ETF (LVHB) | Morningstar Category Avg. |
| Alpha | 4.59% | -3.50% |
| Beta | 0.68 | 0.98 |
| Sharpe Ratio | 1.17 | 0.74 |
| Standard Deviation | 11.49% | 12.63% |
Source: Morningstar as of 10/31/2019
The Innovator Lunt Low Vol/High Beta Tactical ETF is based on the Lunt Capital US Large Cap Equity Rotation Index, which is designed to tactically rotate between low-volatility and high-beta stocks in the S&P 500. The strategy seeks to capture alpha created by the wide dispersion between low volatility and high beta stocks.
| LVHB Standardized Performance & Index History (%) | YTD | 1 Year | Inception |
| ETF NAV | 25.81% | 19.11% | 15.40% |
| ETF Closing Price | 26.25% | 19.23% | 15.42% |
| Lunt Capital US Large Cap Equity Rotation Index | 26.46% | 19.86% | 16.18% |
| S&P 500 Total Return Index | 20.55% | 4.25% | 14.04% |
Data as of 9/30/2019. Performance quoted represents past performance, which is no guarantee of future results.
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