Investors Can Now Put IBD’s Top 25 Index to Work with a Single Click
San Mateo, CA, Oct. 3, 2013
Motif Investing, an innovative online broker that pioneered low-cost, ideas-based investing, and Investor’s Business Daily (IBD), a leading financial news and research organization, announced today that they will offer, for the first time, a way for investors to buy the IBD®Top 25 Index as a single motif — baskets of up to 30 thematically weighted stocks, bonds and ETFs online. The IBD Top 25 motif will track the performance of the 25 top-ranked companies published every Monday in Investor’s Business Daily. The IBD Top 25 Index performance is 38.1% year-to-date, outpacing the broader S&P 500 index which was 16.8% over the same period.
“The IBD 25 is a sophisticated index that has a loyal following,” said Hardeep Walia, Motif’s co-founder and chief executive. “We’re delighted to be able to unlock the potential for investors by giving them a unique motif that they can purchase so easily and cost-effectively.”
The IBD Top 25 is comprised of top-ranked companies based on a combination of fundamental and technical factors that include short and long-term earnings and sales growth, profitability, return on equity, relative price strength, industry group strength and institutional accumulation. High transaction costs and complexity of implementing rebalances have made this index very difficult to replicate — until now. By combining Motif’s innovative tools with IBD’s proven index of stocks, consumers now can invest in the IBD Top 25 motif for a total commission of $9.95.
“Motif offers a powerful, easy-to-use tool enabling people to invest in their own customized investment ideas,” said Chris Gessel, executive editor & chief strategy officer at IBD. “Motif Investing is the perfect fit for putting IBD’s Top 25 to work in a real-money portfolio.”
The IBD Top 25 is rebalanced once a week after Friday’s market close. Investors in the IBD Top 25 motif can easily follow the weekly rebalance with one click and continue to follow IBD’s proprietary market timing methodology.
The IBD Top 25 motif will be listed in the Motif catalog.
About Motif Investing
Motif Investing is an online broker that lets people invest in ideas based on insights, strategies, events and trends. The company, based in Silicon Valley, is changing the face of online investing through innovative, transparent social tools that allow individuals and investment advisors to invest in stock and ETF portfolios built around everyday ideas and broad economic trends—and even create motifs from scratch. Motif is a registered broker-dealer and a member of SIPC. The company’s investors include Foundation Capital, Goldman Sachs, Ignition Partners and Norwest Venture Partners. Board members include former SEC Chairman Arthur Levitt and former Wall Street executive Sallie Krawcheck. Learn more at https://www.motifinvesting.com.
About Investor’s Business Daily
Investor’s Business Daily is a leading financial news and research organization recognized for citing early emerging market and stock trends with proprietary stock screens, research tools, and comparative performance ratings. IBD’s companion website, Investors.com, offers stock tools and research for investors of every level: IBD University, IBD TV market videos and audio interviews, intraday market action and the IBD Stock Checkup®. IBD hosts popular investment workshops and provides Home Study programs based on the top-performing growth strategy, the CAN SLIM® Investing System.* Educational support is the hallmark of IBD, with free IBD Meetup Clubs in major cities, an educational hotline, and introductory phone training for new investors and subscribers. The newspaper was founded April 9, 1984, by William J. O’Neil, who originated the growth investing system that has outperformed major market indexes for decades.*
*The American Association of Individual Investors’ independent “real time” study of over 50 leading strategies found IBD’s CAN SLIM® Investment System achieved an annualized return of +24.7% for the past 15 years (January 1998 through December 31, 2012, AAII Stock Screen). It is the #1 long-term growth strategy measured by AAII Journal.
Investor’s Business Daily, IBD, CAN SLIM and their corresponding logos are registered trademarks of Investor’s Business Daily, Inc.
Investing in securities involves risk, including the possible loss of principal; individual investments or a collection of individual stocks such as motifs which are concentrated in an idea or theme may face increased risk of price fluctuation over more diversified holdings due to adverse developments within a particular industry or sector.
The information provided is not a solicitation or recommendation for an investor to consider any particular investment or strategy. Each investor needs to review their own investment strategy for their particular situation and to determine the suitability of an investment and tolerance for risk. Investors are responsible for all investment decisions they make. Past performance is no guarantee of future results.
The performance of an index is not representative of returns an investor can expect to achieve. Indexes are unmanaged, do not consider certain fees and expenses as part of their performance and cannot be invested in directly. Stated performance is provided as of the close of business on September 30, 2013.
Motif Investing, Inc., and Investor’s Business Daily are separate and unaffiliated companies.
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