IBD 50 Growth Stocks Lift This ETF To Nearly 100% Gain Off Coronavirus Lows

Driven by semiconductors, software and retail, the Innovator IBD 50 ETF (FFTY) has gained 90% from its coronavirus lows in March 2020 through February. Crocs (CROX), Tesla (TSLA), ASML (ASML) PayPal (PYPL), Digital Turbine (APPS) and Deere (DE) are just a few of the growth stocks pushing the ETF higher.


Along with ASML stock, Nvidia (NVDA), Taiwan Semiconductor (TSM), MaxLinear (MXL) and Monolithic Power Systems (MPWR) join five other semiconductor stocks on the list of FFTY components.

In the software sector, APPS stock joins Dynatrace (DT), Fortinet (FTNT) and 2019 IPO stocks to watch Cerence (CRNC) and SciPlay (SCPL).

After taking a hit in March 2020, the retail sector has also rebounded, with the SPDR S&P Retail ETF (XRT) rising 278% before coming off new highs in January 2021. A strong retail rebound helped boost IBD 50 stocks PayPal, Crocs, Floor & Decor (FND), Williams-Sonoma (WSM) and Vipshop (VIPS).

Growth Stocks Lift FFTY ETF To Big Gains In 2021

Rebalanced weekly and weighted by each stock’s ranking within the screen, the FFTY ETF regularly and automatically adjusts for any changes in stock market trends and sector rotation.

Driven by impressive gains in Digital Turbine, Crocs, Taiwan Semiconductor, PayPal and others, the Innovator IBD 50 ETF rose 5.9% in February, following a 5.o% jump in January. The ETF is up nearly 100% from the lows of the coronavirus bear market.

The S&P 500 kicked off 2021 by stubbing its toe with a 1.1% decline before going positive with a 2.6% gain in February.

IBD 50 Growth Stocks Near Buy Zone

Even after running into resistance last week, many of these IBD 50 growth stocks, such as Digital Turbine, Crocs and Logitech (LOGI), are extended from their recent breakouts. Even TSLA stock, which broke below its 10-week moving average last month, remains well above its November breakout as it tries to find support and recover.

But several names continue to trade within or test new buy zones.

Featured in the IBD Stock Analysis on Feb. 19, MaxLinear is trading at the top of its buy zone. The leader in radio frequence (RF) and mixed-signal integrated circuits recently teamed up with Facebook (FB) to expand the Facebook Connectivity program.

Monolithic Power, also highlighted in the IBD Stock Analysis last month, has now formed a flat base showing a 406.85 buy point. Over a 10-year period, MPWR stock has outperformed NVDA stock and Advanced Micro Devices (AMD).

Flooring and design accessories retailer Floor & Decor was featured in IBD just before reporting 81% earnings growth for Q4. Floor & Decor is forming a chart pattern but remains below its 10-week line. Look for the stock to retake that benchmark and see if its relative strength line begins to trend higher.

Innovator IBD 50 ETF

The Innovator IBD 50 ETF from Innovator Capital Management tracks stocks on the IBD 50 list of leading growth stocks. As with other index ETFs, this allows you to essentially invest in the entire index in addition to or rather than buying individual stocks. Learn more about the Innovator IBD 50 ETF and Innovator funds.

Follow Matthew Galgani on Twitter at @IBD_MGalgani


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