Innovator IBD Breakout Opportunities ETF

Innovator IBD Breakout Opportunities ETF (BOUT) tracks the IBD Breakout Stocks Index, a rules-based basket of U.S.-listed stocks whose price patterns suggest they may "break out" above a recent high. The index is rebuilt every week, so the fund trades constantly; its portfolio turnover, the share of holdings replaced in a year, was 1,668%. It charges 0.80% a year, against 0.03% for the broad-market SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM).

• Over the year to Oct 27, 2026, BOUT returned +4.4%.
• Its 5-year annualized return was +3.4%.
• In the 2020 COVID crash it fell 30.2% and regained its old high 3.5 months after the low.
• Its worst full calendar year was 2022 (-22.6%); its best was 2020 (+50.6%).
• The deepest fall in its price history was 36.8% (Sep 14, 2018 to Mar 20, 2020), recovered by Aug 5, 2020.

As of Jan 31, 2026, the fund held 52 securities; the ten largest made up 34.86% of assets. It also reported 23.4% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jan 31, 2026, investors added a net $1.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.71%, -2.78%, +6.63%.

BOUT, from Innovator, tracks the IBD Breakout Stocks Index, owned by Investor's Business Daily. Sub-adviser Penserra Capital Management normally holds every index stock at its index weight. The index starts with about 7,000 U.S.-listed stocks and American depositary receipts (ADRs, U.S.-traded shares of foreign companies), then drops those priced under $10 or thinly traded.

Next, the index studies price charts. It marks a "base price": a recent high not topped for at least four weeks. An algorithm weighs how long the base has lasted, how far the price dipped, how close the current price is to that high and the last three weeks of moves, keeping only stocks nearing or in a breakout. Stocks failing minimum tests for price performance, earnings growth and sales growth are cut. The rest get an IBD Composite Ranking score; the top-ranked group splits 35% of the index equally, and lower groups split 30%, 20%, 10% and 5%.

Because the index is rebalanced and its membership reset every week, the fund trades constantly. Its turnover, the share of holdings replaced in a year, was 1,668%, which can add trading costs beyond the expense ratio. BOUT is "non-diversified," so it can concentrate in fewer companies. As of January 31, 2026, it held 52 stocks, led by Sandisk (4.3%), LivaNova (3.7%) and Bilibili (3.6%).

• BOUT charges 0.8% a year, versus an average of 0.03% for the similar funds below.
• Using the prospectus's standard example, $10,000 invested would cost about $82 in the first year and $990 over 10 years (assuming a 5% annual return).

It holds about 50 chart-picked stocks that change weekly, costs 0.80% a year and has swung harder than the broad market, so it fits as a small side position.

BOUT shares only 5% of its holdings with SPTM, a broad U.S. market fund, so it adds a different mix. The trade-off is sharp swings. Launched in 2018, it has no 2008 record. It fell 30.2% in the 2020 COVID crash but regained its high by July 2020. In the 2022 bear market it dropped 27.5% and didn't recover until October 2024, about 25 months after its low. Its worst calendar year was 2022, a 22.34% loss. Its deepest drop, 36.8% from September 2018 to March 2020, was erased by August 2020. Cashing out or drawing income in a slump like 2022 could lock in losses.

Income is minimal: a 0.29% trailing yield as of October 27, 2026, paid annually. At 0.80% a year, costs total $990 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future; a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).