One area of strength is the firm’s favorable fees for open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors’ returns. Fees for funds are, on average, within the second-cheapest quintile of similarly distributed strategies. The firm’s lineup has demonstrated industry-average durability. Its three-year risk-adjusted success ratio is 49%, meaning that 49% 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. Innovator's longest-tenured managers do not possess comparable experience as teams at other firms, a cause for concern. Specifically, average tenure within the firm is three years. As such, there is less confidence in the group's ability to manage capital through a full market cycle effectively.
‘Boomer Candy’ Funds: Sweet Treats or Investment Toothache?
What to make of these lower-risk approaches to investing in equities.