IBD Breakout Stocks Index Licensed by Innovator Capital Management Forms Basis for Latest ETF Listing
Investor's Business Daily
Sep. 13, 2018
LOS ANGELES, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Investor’s Business Daily (IBD), a leading financial news and research organization, today announced that Innovator Capital Management, LLC, has licensed IBD’s newest and best-performing stock index, the IBD Breakout Stocks Index, to create its latest ETF. Listing under the symbol BOUT, investors and advisors can now purchase an ETF based on this unique index that captures top-rated stocks just as they begin to rally from price consolidations that can lead to major gains. The IBD Breakout Stocks Index is the third index on which IBD and the exchange-traded funds experts at Innovator Capital Management have teamed up. The IBD 50 ETF ( FFTY ) from Innovator tracks the IBD 50 Index while the IBD ETF Leaders ETF ( LDRS ) tracks the IBD ETF Leaders Index.
“Investors and advisors have long relied on IBD’s data-driven stock lists and indexes, but until our collaboration with Innovator, there was no easy way for them to buy the stocks that make up our market-beating indexes,” said Chris Gessel, Chief Content Officer of IBD. “Together, we have created a new model. Already, the IBD 50 ETF and the IBD Leaders ETF have shown tremendous value to investors, proving the concept. Now we are incredibly excited that Innovator is introducing the IBD Breakout Opportunities ETF, which adds another powerful dimension to current offerings.”
The IBD Breakout Stocks Index tracks stocks that indicate a particularly powerful start shared by many of the stock market’s biggest movers. The IBD Breakout Stocks Index starts with companies showing both fundamental and technical strength, and then uses chart-pattern recognition algorithms to identify stocks at or near breakouts. Stocks selected remain part of the index until they trigger sell signals. The index is rebalanced weekly, with heavier weights on stocks showing the most potential for price appreciation.
Over the past 12 months, the IBD Breakout Stocks Index has gained 41.92%, according to Thomson Reuters, which compiles the index. The S&P 500 Total Return Index rose by 20.17% for the same period, which ended Aug. 24. Year-to-date, the IBD Breakout Stocks Index rallied 20.25% vs. 8.87% for the S&P 500. Since the index’s inception in October 2010, it has an annual average growth rate of 30.37% vs. 14.49% for the S&P 500 Total Return. The IBD Breakout Stocks Index provides investors with a unique basket of growth stock exposure, having less than a 15% overlap in holdings compared to the IBD 50 Index.
Current winning stocks on the IBD Breakout Stocks Index include Square (SQ), up 125% YTD; Grubhub (GRUB), 93%; and Paycom Software, up 88%.
To learn more about the latest Innovator ETFs based on IBD’s key indexes, please visit www.investors.com.
About IBDInvestor's Business Daily (IBD) is a leading financial news and research organization recognized for proprietary stock screens, comparative performance ratings and a record of identifying stock leaders as they emerge. The company takes a data-first approach to investing, educating investors about how to invest successfully using tested methods and sound research. IBD has honed its approach over the last 50 years to help investors make smarter decisions. Its stock lists have outperformed the S&P, and its presidential poll, the most accurate over the past four election cycles, was one of only two national polls to accurately predict the outcome of the 2016 Presidential Election. IBD offers a number of interactive stock research tools and provides information for investors of every level. To learn more about all that IBD has available, please visit www.investors.com.
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For Editorial Contact:Marisa LamGMK Communications for IBDmarisa@gmkcommunications.com650.544.3350