Innovator ETFs Trust - Innovator IBD Breakout Opportunities ETF (BOUT)

Overview

The Innovator IBD Breakout Opportunities ETF (IBD) seeks capital appreciation by investing in companies identified by Investor's Business Daily (IBD) that are exhibiting breakout potential. It focuses on growth stocks following the CAN SLIM investment methodology.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs and innovative investment strategies, demonstrating reliability within the ETF market.

Management Expertise

The management team has experience in structured products and quantitative investment strategies, aligning with the fund's tactical approach.

Goal

To provide investors with capital appreciation by investing in stocks exhibiting breakout potential based on the IBD CAN SLIM methodology.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index, instead employs a proprietary, active investment strategy based on IBD's CAN SLIM methodology to identify breakout stocks.

Composition Primarily holds a portfolio of growth stocks identified by IBD's CAN SLIM methodology, typically focusing on US equities across various sectors.

Market Share: The IBD ETF market share is dependent on the specific investment style and comparison group of ETFs; as it is an active Breakout ETF it's market share is smaller than a broad ETF market. As of December 2024, it is estimated to be below 1%.

Total Net Assets (AUM): 37700000

Key Competitors

• iShares MSCI USA Momentum Factor ETF (MTUM)
• Invesco DWA Momentum ETF (PDP)
• Alpha Architect U.S. Quantitative Momentum ETF (QMOM)

Competitive Landscape

The competitive landscape involves various momentum-based ETFs. IBD offers a unique CAN SLIM-based selection process, potentially providing alpha, but this active management also introduces higher risk. Competitors MTUM and PDP track established momentum indices, offering diversification but potentially less alpha generation.

Historical Performance: Historical performance data should be analyzed directly from the ETF's official resources, such as the fund's website or brokerage platforms. The specific data for returns should be gathered from these sites.

Benchmark Comparison: The effectiveness can be assessed by comparing it to a broad market index (e.g., S&P 500) and a momentum-focused index. Historical data needed to provide this accurately.

Expense Ratio: 0.8

Average Trading Volume

The average trading volume affects the ease of buying and selling shares, which varies, recent volume can be pulled from several sites such as Yahoo Finance or Bloomberg.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer will pay and the lowest price a seller will accept, impacting trading costs; this varies.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends influence growth stocks. Additionally, sentiment and market volatility impact trading dynamics around breakouts.

Growth Trajectory

The growth trajectory depends on the success of the CAN SLIM methodology in identifying profitable breakout stocks and adjustments to holdings.

Competitive Edge

IBD's competitive advantage lies in its proprietary CAN SLIM methodology, a well-known and respected approach to identifying growth stocks. This differentiates it from standard momentum ETFs. It focuses on specific criteria, including earnings growth, institutional sponsorship, and market leadership. However, the effectiveness of this approach is subject to market conditions and stock selection risk.

Volatility

Volatility reflects the degree of price fluctuations, dependent on the Beta and Standard Deviation of the specific holding. Higher volatility could potentially mean more risks.

Market Risk

Market risk arises from investing in equities, and breakout strategies may be more vulnerable during market downturns or sector-specific corrections due to their growth focus.

Ideal Investor Profile

The ideal investor is one who understands growth investing, has a higher risk tolerance, and believes in the CAN SLIM methodology for identifying breakout stocks.

Market Risk

This ETF is suited for active traders or growth-oriented investors seeking potentially high returns, but it is not appropriate for conservative investors prioritizing stability.

The Innovator IBD Breakout Opportunities ETF offers a targeted approach to investing in growth stocks using the IBD CAN SLIM methodology. It presents the potential for capital appreciation, but is subject to higher volatility and market risk. Its focus on breakouts distinguishes it from broad market ETFs. It's suitable for investors who have strong growth outlook and are comfortable with an active management approach. Investors should carefully consider their risk tolerance and investment goals before investing.

Data Sources:

• Innovator ETFs official website
• Investor's Business Daily (IBD)
• Yahoo Finance
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.