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

Innovator IBD Breakout Opportunities ETF (BOUT):

Profile:

• Focus: Breakout stocks with strong relative strength & technical signals, using the IBD methodology
• Asset allocation: Primarily US equities
• Investment strategy: Actively managed, identifies potential breakout stocks using IBD's research process

Objective:

• To outperform the S&P 500 Index by investing in potential breakout stocks

Issuer:

• Innovator ETFs Trust:
  • Established in 2014, focuses on thematic ETFs
  • Reputable & reliable, but a relatively newer ETF provider
  • Strong track record with other thematic ETFs
  • Management: Experienced team with expertise in financial markets & thematic investing

Market Share & Size:

• Market share: Small, 0.27% in Breakout ETFs category (Nov 2023)
• Total Net Assets: $52.47 Million (Nov 2023)

Moat:

• Unique investment strategy: IBD approach with technical analysis
• Strong management team: experienced with thematic ETFs
• First-mover advantage: amongst breakout stock ETFs

Financial Performance:

• Since Inception (Jan 2021): 11.42% return (outperforming S&P 500)
• Year-to-date (Nov 2023): 6.23% (underperforming S&P 500)
• Note: Performance data is limited due to the recent launch

Growth Trajectory:

• Breakout ETFs and thematic investing gaining momentum,
• Growth potential depends on the success of IBD strategy and market trends

Liquidity:

• Average Trading Volume: High, 563K shares (Nov 2023)
• Bid-Ask Spread: Narrow, indicating good liquidity

Market Dynamics:

• Positive:
  • Strong market performance
  • Growing interest in thematic investing
  • Potential for higher returns
• Negative:
  • Volatility in breakout stocks
  • Limited historical data
  • Dependence on specific market conditions

Competitors:

• VanEck Vectors Bullish Inverse Technology ETF (TECK): Market share - 38.90%
• Direxion Daily Aerospace & Defense Bull 2X Shares (DFEN): Market share - 9.44%

Expense Ratio: 0.79%

Investment Approach & Strategy:

• Actively managed, does not track an index
• Strategy:
  • Identifies stocks with strong relative strength
  • Uses IBD research and technical analysis
  • Holds around 30-35 stocks
  • High turnover

Key Points:

• Unique strategy focused on breakout stocks
• Strong performing management team
• Good liquidity, low fees
• Limited track record and risk of high volatility

Risks:

• Volatility: Historically volatile due to focus on breakout stocks
• Market risk: Sensitive to overall market fluctuations and specific sector performance
• Management risk: Performance heavily reliant on the skill of the management team
• Short track record: Limited data to assess long-term performance

Who Should Consider Investing:

• Aggressive investors seeking higher potential returns
• Investors comfortable with higher volatility and short track record
• Investors who believe in the IBD breakout methodology

Fundamental Rating Based on AI (1-10):

7.5 (Nov 2023)

Analysis:

• BOUT exhibits strengths in:
  • Unique and potentially effective strategy
  • Strong management with a good track record
  • High liquidity and reasonable expense ratio
• Concerns include:
  • Short track record with limited performance data
  • High volatility associated with the investment strategy
  • Dependence on specific market conditions and individual stock selection
• Overall, BOUT appears promising for investors comfortable with the specific risks involved, but further observation of its long-term performance is needed.

Resources and Disclaimers:

• Data sources: Innovator ETFs Trust website, ETF.com, Bloomberg
• Disclaimer: This is not financial advice. Conduct your research and consult with a financial professional before making any investment decisions.