Daily ETF Watch: Academy Plans Index Funds
Academy and Innovator seek exemptive relief for passively managed funds.
The firms behind the actively managed Innovator IBD 50 (FFTY) recently filed an exemptive relief request for permission to launch index-based ETFs.
Academy Asset Management and Innovator Management, which is partially owned by Academy, have made a fairly standard request to be allowed to launch passively managed equity and fixed-income ETFs that invest in both foreign and domestic securities, as well as 130/30 ETFs, long/short ETFs and self-indexed ETFs and fund-of-funds ETFs.
The initial fund described in the filing will be based on an index developed by Investor’s Business Daily. The Innovator IBD Small-Mid Cap Leaders Fund will track companies that have market capitalizations of $5 billion or less and that have been awarded a score of at least 95 by Investor’s Business Daily. IBD rates stocks on a variety of metrics and also issues a composite rating from 1 to 99, according to the IBD website.
FFTY uses the IBD 50 Index as its selection universe and reweights the components based on their fundamental and technical indicators.
Contact Heather Bell at [email protected].
