The IBD 50 ETF and index are up more than 11% so far this year, outperforming the S&P 500's 7.4% gain. And there's another, lesser-known IBD index fund that, in some regards, has done even better.
The Innovator Breakout Opportunities ETF has spent more time above its 50-day moving average than its cousin, the Innovator IBD 50 ETF.
On Tuesday, BOUT closed above the 200-day moving average while FFTY remained more than 10% below the 200-day line. The Breakout ETF pulled back on Wednesday following a collapse in Credo Technology, one of the fund's holdings.
Breakout Opportunities has been the stronger performer since the stock market bottomed in October, up 7%, while the IBD 50 has fallen nearly 5%. The Nasdaq and S&P 500 have risen about 12% since that turning point.
And The Winner Is ...
But since the Jan. 6 follow-through, the IBD 50 ETF has outperformed with a better-than-8% gain. By comparison, its rival is up less than 3%. But BOUT's chart profile looks better so it's a mistake to disregard the performance as inferior.
The Innovator IBD 50 ETF tracks the IBD 50 index with a weighting that favors stocks ranked higher on a scoring method.
Meanwhile, the Breakout Opportunities ETF tracks an IBD-designed index that selects stocks with the potential to break out, or "experience a period of sustained price growth beyond the stock's recent resistance level," according to the prospectus. Market conditions are part of the mix.
BOUT trades less than 2,000 shares per day on average, while FFTY is more liquid, with average daily volume of 37,300 shares, according to MarketSmith.
Both ETFs are consolidating after prolonged declines in last year's bear market.
