One notable advantage of Innovator is its below-average fees. On average, the firm's open-end and exchange-traded fund fees fall in the second-lowest quintile of category peers. The firm’s lineup has demonstrated industry-average durability. Its five-year risk-adjusted success ratio is 57%, meaning that 57% of strategies have both survived and beaten their respective category median on a risk-adjusted basis. A firm's success ratio indicates relative performance and provides insight into a firm’s discipline around investment strategy and product development. A notable weakness of Innovator is the inexperience of its longest-tenured managers compared with other asset managers. Managing capital through a full market cycle is a challenging prospect for seasoned managers, but with only three years of average tenure across their management team, there is cause for concern.
Innovator has some investor-friendly attributes, but other attributes warrant caution, leading to an Average Parent Pillar rating.