The Investor's Business Daily 50 Index, or IBD 50, is one of the more popular equity index benchmarks in the industry. It's the brainchild of IBD's William O'Neil who used a quantitative approach to identifying companies that demonstrate strong earnings or sales growth, high returns on equity, revenue catalysts and improving cash flows using the CAN SLIM methodology.
This approach has produced some stellar results. After all, who doesn't like a performance chart that looks like this?
So interest was quite high when the Innovator's Fund Group announced it was going to launch the IBD 50 ETF (FFTY) based on the index. For the first time, direct investment into the index was going to be available to regular investors.
Since its launch in April 2015, however, the fund has largely been a dud. It's only attracted about $37 million in total assets and its performance has been pitiful. Since inception,… Read More …