| Investment Objective: |
The Fund will normally invest at least 80% of its net assets in the equity securities that comprise the IBD Breakout Stocks Index. The Fund generally invests in all of the securities comprising the Index in proportion to the weightings of the securities in the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index's initial universe consists of the approximately 7,000 equity securities that trade on the New York Stock Exchange, The Nasdaq Stock Market, LLC or NYSE American, LLC. This initial universe is composed of U.S.-listed common stocks and American depositary receipts ("ADRs") issued by small, mid and large capitalization companies. Each security chosen for inclusion in the Index and is assigned a ranking score using IBD's Composite Ranking, based upon the following components Earnings Per Share Rating, Relative Price Strength Rating, Industry Group Relative Strength Rating, Sales Margins Return on Equity ("SMR") Rating, Accumulation Distribution Rating and Percentage Deviation from 52-week Price High. The Index utilizes this ranking score to assign weights, with those stocks with higher rankings receiving larger weights. |
