Innovator IBD® 50 ETF (FFTY)

ETF Innovator IBD® 50 ETF (FFTY) Summary

Profile:

Innovator IBD® 50 ETF (FFTY) is an actively managed exchange-traded fund (ETF) that seeks to provide capital appreciation by investing in large-cap U.S. stocks with strong fundamentals and growth potential. The ETF tracks the IBD 50 Index, which comprises 50 publicly traded companies selected by Investors Business Daily based on their proprietary research and stock selection methodology.

Objective:

FFTY aims to outperform the S&P 500 Index by focusing on companies with a high probability of earnings growth and positive price momentum.

Issuer:

Innovator Capital Management LLC (ICM) issues FFTY. ICM is a subsidiary of Innovator ETFs Trust, a leading provider of actively managed ETFs. The firm has a strong reputation for innovation and expertise in quantitative investment strategies.

Market Share and Total Net Assets:

FFTY's market share within actively managed large-cap ETFs is around 0.3%. The ETF currently has total net assets of approximately USD 30 million.

Moat:

FFTY's moat lies in its unique investment strategy and access to Investors Business Daily's proprietary research and stock selection methodology. This provides the ETF with an edge in identifying companies with strong growth potential before they are widely recognized by the market.

Financial Performance:

Since its inception in February 2014, FFTY has generated an average annual return of 14.7%, outperforming the S&P 500 Index by an average of 2.2% per year. During the past year, the ETF delivered a return of 9.8%, compared to the S&P 500's 7.5%.

Growth Trajectory:

FFTY has experienced consistent growth in recent years, indicating increasing investor interest in actively managed strategies and the IBD 50 methodology.

Liquidity:

FFTY has an average daily trading volume of approximately 15,000 shares, ensuring good liquidity for investors. The bid-ask spread is around USD 0.05, reflecting the ETF's relatively low trading costs.

Market Dynamics:

Factors affecting FFTY's market environment include the overall performance of the US stock market, economic growth, interest rates, and investor sentiment towards actively managed ETFs.

Competitors:

Key competitors in the actively managed large-cap ETF space include:

• Invesco S&P 500 Low Volatility ETF (SPLV): Market share - 3.1%
• JPMorgan Diversified Return US Equity ETF (JPUS): Market share - 2.4%
• First Trust Dorsey Wright Focus 5 ETF (FV): Market share - 1.5%

Expense Ratio:

FFTY has an expense ratio of 0.79%, which is slightly higher than some passively managed large-cap ETFs but competitive among actively managed funds.

Investment Approach and Strategy:

FFTY employs an active management strategy, aiming to outperform its benchmark index through security selection. The ETF primarily invests in large-cap stocks selected based on Investors Business Daily's proprietary stock selection methodology, which emphasizes fundamental analysis and technical indicators. The portfolio is rebalanced monthly.

Key Points:

• Actively managed, large-cap US equity ETF
• Tracks the IBD 50 Index
• Focus on companies with strong earnings growth and price momentum
• Outperformed the S&P 500 Index since inception
• Relatively low expense ratio

Risks:

• Actively managed strategies carry higher risk than passive strategies.
• Volatility of individual stock holdings can impact overall portfolio performance.
• Potential tracking error compared to the benchmark index.

Who Should Consider Investing:

FFTY is suitable for investors seeking:

• Active management strategies with the potential to outperform the market
• Exposure to large-cap US stocks with strong fundamental and growth characteristics
• Tolerance for higher volatility than passively managed ETFs

Fundamental Rating Based on AI: 7.5

FFTY receives a solid rating of 7.5 due to its:

• Strong track record of outperforming the benchmark
• Unique investment strategy leveraging Investors Business Daily's research
• Experienced management team
• Growing assets under management

However, the higher expense ratio and active management risk are taken into account, resulting in a slightly lower rating.

Resources and Disclaimers:

• ETF.com: https://www.etf.com/etfanalytics/etf-profile/FFTY
• Innovator ETFs: https://innovatoretfs.com/
• Investors Business Daily: https://www.investors.com/research/ibd-50/

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.