Innovator ETFs Trust II NPORT-P Innovator S&P Investment Grade Preferred ETF (Jul 2021 report)

Innovator S&P Investment Grade Preferred ETF
Schedule of Investments
July 31, 2021 (Unaudited)
	Shares			Value
PREFERRED STOCKS - 99.82% (a)
Banks - 34.16%
Bank of America Corp., Series 02, 3.000% to 8/31/2021 then 3-Month Libor + 0.650%		28,729		$	682,027
Bank of America Corp., Series 5, 4.000% to 8/21/2021 then 3-Month Libor + 0.500% (b)		25,717			657,069
Bank of America Corp., Series E, 4.000% to 8/16/2021 then 3-Month Libor + 0.350% (b)		25,547			664,733
Bank of America Corp., Series GG, 6.000%		23,984			647,568
Bank of America Corp., Series HH, 5.875%		23,932			649,036
Bank of America Corp., Series KK, 5.375%		23,503			646,333
Bank of America Corp., Series LL, 5.000%		23,993			647,811
Bank of America Corp., Series NN, 4.375%		24,990			651,739
Bank of America Corp., Series PP, 4.125% (b)		25,148			647,058
Bank of Hawaii Corp., Series A, 4.375% (b)		232,202			6,020,997
Cullen/Frost Bankers, Inc., Series B, 4.450% (b)		231,025			6,099,060
First Citizens BancShares, Inc./NC, Series A, 5.375%		216,260			5,916,873
First Republic Bank/CA, Series J, 4.700% (b)		72,085			1,942,691
First Republic Bank/CA, Series K, 4.125% (b)		76,619			1,936,928
First Republic Bank/CA, Series L, 4.250% (b)		73,755			1,906,567
Fulton Financial Corp., Series A, 5.125%		218,494			5,953,961
JPMorgan Chase & Co., Series DD, 5.750%		41,889			1,142,732
JPMorgan Chase & Co., Series EE, 6.000% (b)		41,132			1,154,575
JPMorgan Chase & Co., Series GG, 4.750% (b)		43,393			1,147,311
JPMorgan Chase & Co., Series JJ, 4.550%		44,335			1,166,454
JPMorgan Chase & Co., Series LL, 4.625%		44,386			1,167,352
Northern Trust Corp., Series E, 4.700% (b)		214,847			5,867,472
State Street Corp., Series D, 5.900% to 03/15/2024 then 3-Month Libor + 3.108% (b)		103,445			2,958,527
State Street Corp., Series G, 5.350% to 03/15/2026 then 3-Month Libor + 3.709% (b)		98,226			2,974,283
The PNC Financial Services Group, Inc., Series P, 6.125% to 05/01/2022 then 3-Month Libor + 4.067%		224,627			5,873,996
Truist Financial Corp., Series O, 5.250% (b)		104,173			2,902,260
Truist Financial Corp., Series R, 4.750%		110,800			2,939,524
US Bancorp., Series B, 3.500% to 10/15/2021 then 3-Month Libor + 0.600% (b)		47,425			1,196,059
US Bancorp., Series F, 6.500% to 01/15/2022 then 3-Month Libor + 4.468%		45,687			1,182,836
US Bancorp., Series K, 5.500% (b)		42,218			1,177,460
US Bancorp., Series L, 3.750% (b)		47,425			1,184,677
US Bancorp., Series M, 4.000% (b)		45,775			1,175,502
Wells Fargo & Co., Series O, 5.125%		228,354			5,800,192
					76,681,663
Capital Markets - 8.06%
Highland Income Fund, Series A, 5.375% (b)		227,127			5,821,265
KKR & Co., Inc., Series C, 6.000%, 09/15/2023 (b)		76,136			6,322,333
Oaktree Capital Group LLC, Series A, 6.625% (b)		107,072			2,983,026
Oaktree Capital Group LLC, Series B, 6.550% (b)		105,923			2,969,022
					18,095,646
Diversified Financial Services - 5.29%
Apollo Global Management, Inc., Series A, 6.375%		112,526			2,965,060
Apollo Global Management, Inc., Series B, 6.375%		110,059			2,975,995
The Charles Schwab Corp., Series D, 5.950%		116,742			2,983,926
The Charles Schwab Corp., Series J, 4.450%		110,676			2,959,476
					11,884,457
Electric - 10.48%
Alabama Power Co., Series A, 5.000%		221,023			5,890,263
Brookfield Infrastructure Partners LP, Series 13, 5.125%		224,372			5,856,109
Brookfield Renewable Partners LP, Series 17, 5.250%		223,356			5,845,227
Duke Energy Corp., 5.125%, 01/15/2073 (b)		223,356			5,936,802
					23,528,401
Insurance - 28.87%
Aegon NV, Series 1, 4.000% to 9/15/2021 then 3-Month Libor + 0.875%		228,881			5,937,172
American International Group, Inc., Series A, 5.850%		206,600			5,660,840
Arch Capital Group Ltd., Series E, 5.250%		77,826			1,970,554
Arch Capital Group Ltd., Series F, 5.450%		74,960			1,972,198
Arch Capital Group Ltd., Series G, 4.550%		76,560			1,972,186
Athene Holding Ltd., Series A, 6.350% to 06/30/2029 then 3-Month USD Libor + 4.253%		50,060			1,489,285
Athene Holding Ltd., Series B, 5.625%		53,866			1,467,849
Athene Holding Ltd., Series C, 6.375% to 09/30/2025 then Five-Year Treasury Constant Maturity + 5.970%		52,416			1,506,960
Athene Holding Ltd., Series D, 4.875%		57,153			1,495,122
Axis Capital Holdings Ltd., Series E, 5.500%		233,117			5,907,185
MetLife, Inc., Series A, 4.000% to 9/15/2021 then 3-Month Libor + 1.000%		75,534			1,983,523
MetLife, Inc., Series E, 5.625% (b)		70,870			1,956,721
MetLife, Inc., Series F, 4.750%		72,938			1,966,408
PartnerRe Ltd., Series J, 4.875%		214,070			5,916,894
Prudential PLC, 6.500%		109,490			2,969,369
Prudential PLC, 6.750% (b)		106,726			2,899,745
RenaissanceRe Holdings Ltd., Series E, 5.375%		117,111			2,957,053
RenaissanceRe Holdings Ltd., Series F, 5.750%		109,530			2,973,740
The Allstate Corp., 5.100% to 01/15/2023 then 3-Month Libor + 3.165%, 01/15/2053 (b)		73,728			2,003,190
The Allstate Corp., Series H. 5.100% (b)		70,088			1,941,438
The Allstate Corp., Series I, 4.750%		71,671			1,968,802
The Hartford Financial Services Group, Inc., 7.875% to 04/15/2022 then 3-Month Libor + 5.596%, 04/15/2042		111,342			2,944,996
The Hartford Financial Services Group, Inc., Series G, 6.000%		102,941			2,942,054
					64,803,284
Real Estate Investment Trusts - 10.33%
Kimco Realty Corp., Series L, 5.125% (b)		113,649			2,987,832
Kimco Realty Corp., Series M, 5.250% (b)		110,676			2,976,078
National Retail Properties, Inc., Series F, 5.200%		230,218			5,875,162
PS Business Parks, Inc., Series W, 5.200%		58,300			1,483,735
PS Business Parks, Inc., Series X, 5.250%		56,049			1,491,464
PS Business Parks, Inc., Series Y, 5.200% (b)		55,357			1,499,067
PS Business Parks, Inc., Series Z, 4.875% (b)		53,113			1,478,135
Public Storage, Series E, 4.900%		21,140			542,664
Public Storage, Series F, 5.150%		20,114			531,412
Public Storage, Series G, 5.050%		20,559			541,730
Public Storage, Series H, 5.600%		18,938			531,779
Public Storage, Series I, 4.875% (b)		19,466			542,712
Public Storage, Series L, 4.625%		19,552			544,328
Public Storage, Series M, 4.125% (b)		20,567			539,884
Public Storage, Series N, 3.875% (b)		21,018			546,468
Public Storage, Series O, 3.900% (b)		20,459			540,118
Public Storage, Series P, 4.000%		21,241			541,433
					23,194,001
Savings & Loans - 2.63%
Washington Federal, Inc., Series A, 4.875%		221,601			5,890,155
TOTAL PREFERRED STOCKS (Cost $219,493,538)					224,077,607
INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING - 10.79%	Units
Mount Vernon Liquid Assets Portfolio, LLC, 0.11% (c)		24,217,123			24,217,123
TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $24,217,123)					24,217,123
SHORT TERM INVESTMENTS - 0.48%
Money Market Deposit Account - 0.48%	Principal Amount
U.S. Bank Money Market Deposit Account, 0.003% (d)	$	1,076,526			1,076,526
TOTAL SHORT TERM INVESTMENTS (Cost $1,076,526)					1,076,526
Total Investments (Cost $244,787,187) - 111.09%					249,371,256
Liabilities in Excess of Other Assets - (11.09)%					(24,900,859	)
TOTAL NET ASSETS - 100.00%				$	224,470,397
Asset Type	% of Net Assets
Preferred Stocks		99.82	%
Investments Purchased with Proceeds From Securities Lending		10.79
Short Term Investments		0.48
Total Investments		111.09
Liabilities in Excess of Other Assets		(11.09	)
Net Assets		100.00	%
Percentages are stated as a percent of net assets.
USD - United States Dollar
Libor - London Interbank Offered Rate
(a) Securities with no stated maturity date are perpetual in nature.
(b) All or a portion of this security is on loan as of July 31, 2021. The total value of securities on loan is $23,750,591, or 10.58% of net assets. See Note 3.
(c) Represents annualized seven-day yield as of the end of the reporting period.
(d) The Money Market Deposit Account (the “MMDA”) is a short-term investment vehicle in which the Fund holds cash balances. The MMDA will bear interest at a variable rate that is determined based on conditions and may change daily and by any amount. The rate shown is as of July 31, 2021.

1)  SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Innovator ETFs Trust II  (the “Trust”) in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Valuation:

Portfolio securities generally shall be valued utilizing prices provided by independent pricing services. The Trust’s Pricing Committee (“Pricing Committee”) is responsible for establishing valuation of portfolio securities and other instruments held by the Fund in  accordance with the Trust’s valuation procedures.

Common stocks, preferred stocks and other equity securities listed on any national or foreign exchange (excluding the NASDAQ National Market (“NASDAQ”) and the London Stock Exchange Alternative Investment Market (“AIM”)) are generally valued at the last sale price on the exchange on which they are principally traded or, for NASDAQ and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the exchange representing the principal market for such securities. Securities traded in the over-the-counter market are valued at the mean of the bid and the asked price, if available, and otherwise at their closing bid price. Redeemable securities issued by open-end investment companies shall be valued at the investment company’s applicable net asset value, with the exception of exchange-traded open-end investment companies which are priced as equity securities. Fixed income securities, swaps, currency-, credit- and commodity-linked notes, and other similar instruments will be valued using a pricing service. Fixed income securities having a remaining maturity of 60 days or less when purchased will be valued at cost adjusted for amortization of premiums and accretion of discounts, provided the Pricing Committee has determined that the use of amortized cost is an appropriate reflection of fair value given market and issuer specific conditions existing at the time of the determination. Foreign securities and other assets denominated in foreign currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar as provided by the pricing service. All assets denominated in foreign currencies will be converted into U.S. dollars at the exchange rates in effect at the time of valuation. Restricted securities (with the exception of Rule 144A Securities for which market quotations are available) will normally be valued at fair value as determined by the Pricing Committee.

If no quotation can be obtained from a pricing service, then the Pricing Committee will then attempt to obtain one or more broker quotes for the security. If no quotation is available from either a pricing service or one or more brokers or if the Pricing Committee has reason to question the reliability or accuracy of a quotation supplied or the use of amortized cost, the value of any portfolio security held by the Fund for which reliable market quotations are not readily available will be determined by the Pricing Committee in a manner that most appropriately reflects fair market value of the security on the valuation date. The use of a fair valuation method may be appropriate if, for example: (i) market quotations do not accurately reflect fair value of an investment; (ii) an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (for example, a foreign exchange or market); (iii) a trading halt closes an exchange or market early; or (iv) other events result in an exchange or market delaying its normal close.

Fair Valuation Measurement:

FASB established a framework for measuring fair value in accordance with U.S. GAAP. Under ASC, Fair Value Measurement (“ASC 820”), various inputs are used in determining the value of the Fund’s investments. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three Levels of inputs of the fair value hierarchy are defined as follows:

• Level 1 –Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

• Level 2 –Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

• Level 3 –Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgement. Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of July 31, 2021:

	Level 1		Level 2		Level 3		Total
Assets
Preferred Stocks	$	224,077,607	$	-	$	-	$	224,077,607
Investments Purchased with Proceeds From Securities Lending		-		24,217,123		-		24,217,123
Short Term Investments		1,076,526		-		-		1,076,526
Total Assets	$	225,154,133	$	24,217,123	$	-	$	249,371,256
See the Schedule of Investments for the investments detailed by industry classification.
There were no Level 3 investments held by the Fund during the reporting period.

2) SECURITIES LENDING
The Fund may lend up to 33 1/3% of the value of the securities in its portfolio to brokers, dealers and financial institutions (but not individuals) under terms of participation in a securities lending program administered by the securities lending agent. The Trust has entered into a Securities Lending Agreement (“SLA”) with U.S. Bank, N.A., the fund’s custodian (the “Agent”). Under the terms of the SLA, the Fund may lend securities to certain broker–dealers and banks in exchange for collateral in the amount of at least 102% of the value of U.S. securities loaned or at least 105% of the value of non–U.S. securities loaned, marked to market daily. The collateral can be received in the form of cash collateral and/or non–cash collateral. Non–cash collateral can include U.S. Government Securities and letters of credit. The cash collateral is invested in the Mount Vernon Liquid Assets Portfolio, LLC (“Mount Vernon”), as noted in the Fund’s Schedule of Investments. Mount Vernon seeks to maximize current income to the extent consistent with the preservation of capital and liquidity; and to maintain a stable NAV of $1.00. The market value of the loaned securities is determined daily at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund continues to benefit from interest or dividends on the securities loaned and may also earn a return from the collateral. The Funds pay various fees in connection with the investment of cash collateral. The Funds pay the Agent fees based on the investment income received from securities lending activities. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. Cash and cash equivalent collateral on securities lending transactions are on an overnight and continuous basis.
As of July 31, 2021, the values of the securities on loan and cash collateral received were as follows:
	Value of Securities on Loan	Cash Collateral Received
	$23,750,591	$24,217,123