Underlying components may include small-, mid- and large-capitalization companies located in either developed or emerging markets and in securities of any credit quality, including “junk” securities.
LDRS may also act as a fund-of-funds as its initial universe for the Index is composed of all U.S.-listed exchange traded funds. Underlying funds include those with an average daily trading volume of greater than 100,000 shares over the previous 50 days, trading above their average 6-month price and show returns higher than those of the S&P 500 Index over the course of the previous three months.
Innovator also offers another strategy based of IBD research, the Innovator IBD 50 Fund (NYSEArca: FFTY). Regular readers of Investor’s Business Daily are well-acquainted with the publication’s venerable IBD 50, a group of fundamentally sound leading stocks displaying impressive relative strength that are selected by IBD’s signature investing tool, targeting companies that are generating outstanding profit growth, big sales increases, wide profit margins and a high return on equity.
For more information on new fund products, visit our new ETFs category.
CORRECTION: Clarification on underlying indexing methodology.