Data-Driven IBD Indexes Licensed to Innovator Capital Management Offer a New Way to Invest

IBD ETF Leaders Index CAGR is 20% over 12 years;
IBD 50 Index CAGR is 19% over 14 years

ETFs based on IBD 50 and IBD ETF Leaders indexes to provide unprecedented opportunities to investors and robo advisors

LOS ANGELES, Dec. 12, 2017 -- Investor’s Business Daily (IBD), a leading financial news and research organization, today announced that Innovator Capital Management has licensed two of its most popular and highly valued indexes, IBD® 50 and IBD ETF Leaders, in order to create a new breed of ETF. Investors and advisors have long depended on these indexes to guide investment decisions, but there has been no way for them to collectively purchase the stocks on the respective lists. Innovator aims to change this in a way that is capital efficient.

“Because our indexes are based on our proprietary data and our tried-and-true CAN SLIM® Investing System, they have helped countless investors achieve their goals,” said Chris Gessel, Chief Content Officer of IBD. “Now, Innovator has licensed these high-performing indexes to develop something novel and powerful in the world of ETFs, which presents a tremendous opportunity for investors and robo advisors alike. The IBD 50 Index is already well on its way to proving the value of this concept, as it far outperforms the S&P 500 Index year to date. We believe this approach will fundamentally change the way investors consider ETFs.”

IBD developed its recently-licensed ETF Leaders Index by applying its proprietary data and analysis to the universe of ETFs, focusing on those ETFs that are pulling ahead of the S&P 500. The index is computer-generated and can invest in nearly any area of the ETF market, including stocks, bonds, industries and regions. This approach provides unemotional and objective selection applied to the ETF market, and the focus on strength automatically prunes weaker sectors in favor of stronger sectors. It also allows for investing in sectors that can act as a hedge in weak markets. As a result, the performance for the IBD ETF Leaders Index from June 1, 2005 – September 29, 2017 has resulted in a Compounded Annual Growth Rate (CAGR) of 20%, while the S&P 500 CAGR is 6%.

The underlying IBD ETF Leaders Index powers an ETF that offers everything a robo advisor does but through a more tax-efficient model. An ETF based on the methodology of the IBD ETF Leaders Index could also be provided through a single ticket transaction. By relying on the IBD ETF Leaders Index, one could adopt a truly independent approach to asset allocation without regards to the ETF issuer or expense.

The IBD 50 is IBD’s flagship index of leading growth stocks. It has long been one of IBD’s most popular lists. It is rank weighted, applying a higher percentage to the highest-ranked stocks. The IBD 50 Index shows no bias toward any industry, and stock selection is not subjective. Ongoing analysis is designed to retain true leaders and replace names when price/volume movement or withering fundamentals demands it. The ability to refresh itself objectively is elemental to its strong performance over the long term. From April 11, 2003 – September 29, 2017, the IBD 50 (CAGR) is 19% while the S&P 500 CAGR is 8%.

To learn more about IBD’s key indices, please visit www.investors.com.

About IBD
Investor's Business Daily 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 recent 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 information for investors of every level. To learn more about all that IBD has available, please visit www.investors.com.

For Editorial Contact:
Marisa Lam
GMK Communications for IBD
[email protected]
650.544.3350