Innovator Growth Accelerated ETF - Quarterly (XDQQ) seeks to provide accelerated exposure to growth-oriented companies through a structured investment approach with quarterly reset periods. This growth-focused ETF targets companies demonstrating strong earnings growth, revenue expansion, and innovative business models across various market capitalizations.
How It Works
XDQQ employs a rules-based methodology to identify and weight companies based on fundamental growth metrics including earnings per share growth, revenue growth rates, and return on invested capital. The fund rebalances quarterly to maintain exposure to the highest-scoring growth companies while managing concentration risk. Holdings are actively screened and weighted based on growth momentum indicators, with position sizes adjusted quarterly based on updated growth scores and market conditions.
Key Features
- Quarterly rebalancing captures evolving growth opportunities and removes companies that no longer meet strict growth criteria
- Structured approach combines fundamental growth metrics with momentum indicators for systematic stock selection and weighting
- Zero expense ratio structure provides cost-efficient access to accelerated growth investing strategies
Risks
- This ETF can lose value significantly during growth stock selloffs, potentially declining 40-50% when investors rotate from growth to value stocks
- Quarterly rebalancing may increase portfolio turnover and transaction costs, reducing net returns during volatile market periods
- Growth companies trade at premium valuations that can compress rapidly during economic slowdowns, amplifying losses beyond broader market declines
Who Should Own This
Best suited for aggressive investors with high risk tolerance and 3-5 year time horizons seeking concentrated growth exposure as a satellite holding (10-20% of equity allocation). Appropriate for investors comfortable with significant volatility in exchange for potential outperformance during growth-favorable market cycles and economic expansion periods.