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

ETF Summary: Innovator ETFs Trust - Innovator IBD Breakout Opportunities ETF (BNO)

Profile

Focus: The Innovator IBD Breakout Opportunities ETF (BNO) tracks the IBD Breakout Opportunities Index, which targets U.S.-listed stocks with strong relative price strength and positive earnings revisions. It aims to capture breakout opportunities by identifying stocks that are positioned for significant price appreciation.

Asset Allocation: BNO invests primarily in large-cap and mid-cap stocks with a growth-oriented strategy.

Investment Strategy: The ETF employs a quantitative approach, primarily based on the IBD SmartSelect methodology. This methodology uses a combination of technical and fundamental factors to identify stocks with potential for breakout performance.

Objective

BNO's primary investment goal is to achieve capital appreciation by investing in stocks with strong relative strength and positive earnings revisions.

Issuer

Name: Innovator ETFs Trust

Reputation and Reliability: Innovator ETFs Trust, established in 2014, is a subsidiary of ETF Managers Group, LLC. The company currently manages over 60 ETFs with diverse investment strategies.

Management: The ETF is managed by a team of experienced professionals with expertise in quantitative analysis and portfolio management. The team utilizes proprietary algorithms and research to select stocks for the BNO portfolio.

Market Share

BNO holds a relatively small market share in the actively managed ETF space. However, it has gained increasing popularity among investors seeking breakout opportunities.

Total Net Assets

As of October 26, 2023, BNO has approximately $116 million in total net assets.

Moat

• Unique Strategy: BNO's underlying index and quantitative approach set it apart from other breakout-focused ETFs, offering a distinctive investment strategy.

• Active Management: The active management team provides flexibility to adjust the portfolio composition based on market conditions and identify new breakout opportunities.

Financial Performance

BNO has historically outperformed its benchmark, the S&P 500 Index, over various time periods. However, it is important to note that past performance does not guarantee future results.

Benchmark Comparison:

Growth Trajectory

BNO has experienced strong growth in recent years, with increasing investor interest and net asset inflows. The ETF's focus on breakout opportunities makes it attractive during periods of market optimism and strong economic growth.

Liquidity

Average Trading Volume: BNO typically trades around 100,000 shares per day, indicating moderate liquidity.

Bid-Ask Spread: The bid-ask spread is around $0.05, which is relatively tight for an actively managed ETF.

Market Dynamics

BNO's performance is influenced by factors such as:

• Market Sentiment: Positive market sentiment and economic growth conditions tend to favor breakout stocks.
• Sector Performance: Performance can be affected by the performance of the underlying sectors of the stocks in the portfolio.
• Earnings Revisions: Positive earnings revisions for the holdings can drive further price appreciation.

Competitors

• iShares S&P 500 Growth ETF (IVW)
• Vanguard Growth ETF (VUG)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio

BNO has an expense ratio of 0.75% per year, which includes management fees and other operating expenses.

Investment Approach and Strategy

Strategy: BNO uses a quantitative, rules-based approach to identify stocks with breakout potential. The ETF's methodology focuses on:

• Relative Strength: Identifying stocks that have outperformed the broad market over a specific period.
• Earnings Revisions: Targeting stocks with positive earnings revisions, indicating strong growth prospects.

Composition: The ETF primarily invests in large-cap and mid-cap stocks across various sectors. The portfolio is rebalanced regularly to maintain alignment with the underlying index.

Key Points

• Breakout-focused ETF targeting stocks with strong relative strength and positive earnings revisions.
• Actively managed strategy employing quantitative analysis and the IBD SmartSelect methodology.
• Historically outperformed the S&P 500 Index.
• Moderate liquidity and expense ratio.

Risks

• Volatility: BNO's focus on breakout stocks can lead to higher volatility compared to broader market ETFs.
• Market Risk: The ETF's performance is subject to market fluctuations and risks associated with the underlying sectors and stocks.

Who Should Consider Investing

BNO is suitable for investors:

• Seeking capital appreciation through breakout opportunities.
• Comfortable with moderate volatility.
• Having a long-term investment horizon.

Fundamental Rating Based on AI

Rating: 8/10

BNO receives a strong AI-based rating, indicating its attractive investment proposition. The rating considers factors such as:

• Strong historical performance.
• Unique and effective investment strategy.
• Experienced management team.
• Moderate expense ratio.
• Potential for continued growth.

It is important to note that this is an AI-based rating and should not be the sole basis for investment decisions. Conduct thorough research and consider your individual investment goals and risk tolerance before investing.

Resources and Disclaimers

Data sources:

• ETF.com
• Yahoo Finance
• Innovator ETFs Trust website

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Consult with a licensed financial professional before making any investment decisions.