Innovator Lists the Gradient Tactical Rotation Strategy ETF (IGTR), a Global Equity Strategy Seeking Systematic Alpha

CHICAGO, Nov. 17, 2022 (GLOBE NEWSWIRE) -- Innovator Capital Management, LLC (Innovator) today announced the listing of the Innovator Gradient Tactical Rotation Strategy ETF (IGTR) on NYSE Arca. IGTR is an actively managed global equity strategy that seeks to provide long-term capital appreciation and achieve excess returns over the S&P Global Broad Market Index. The ETF will be subadvised by Gradient Investments LLC, an independent, privately owned, fee-based, SEC-registered investment advisor, and is patterned on a proprietary rules-based methodology from the Arden Hills, Minnesota-based RIA.

“Equity markets around the world often display wide dispersions of return over time. This can create opportunities to make tactical investment decisions and rotate capital to areas of strength across the global stock market. The Innovator Gradient Tactical Rotation Strategy ETF will seek to identify the strongest, and avoid the weakest, equity market segments and subsectors globally. By applying a systematic momentum-based approach to equity investing – and reserving the right to take a risk-off approach by holding cash under certain circumstances – IGTR aims to maximize risk-adjusted returns across full market cycles and be a potentially compelling option for advisors allocating to growth strategies,” said Michael Binger, CFA, President of Gradient Investments, LLC.

On a monthly basis, IGTR seeks to identify the broad geographic equity market segment and subsector (or factor) displaying the strongest price momentum metrics. The strategy divides the global stock market universe into three geographical segments: U.S. markets, international developed markets and emerging markets. IGTR’s nine subsectors include high beta (U.S.), momentum (international developed and emerging markets), neutral broad market and low volatility. The ETF will then invest in the individual stocks, depositary receipts and/or American depositary receipts comprising the selected global equity market segment and factor with the most favorable momentum characteristics.

If Gradient determines that all nine global equity subsectors exhibit significant and sustained negative price movement and that none show expectations of outperforming the global benchmark, IGTR will de-risk by investing in cash or cash equivalents, such as U.S. Treasury Bills with maturities of less than one-year. The ETF will hold cash or cash equivalent positions until positive price momentum is identified within the strategy’s investment universe upon monthly rebalance. This risk management component of the strategy seeks to mitigate overall market risk.