New ETF Tracks IPOs (FPX)

April 13, 2006 at 7:54 am by Tom Lydon

The First Trust IPOX-100 (FPX) will track the performance of the biggest US IPOs. As new ETFs are developed its nice to see one that tracks an index that’s ween around for a while. Google, Viacom and Genworth Financial are the top three holdings.

Greg Newton from Naked Shorts points out the main characteristics of this ETF:

IPOs come into the IPOX Composite at their seventh trading day
after going public and automatically exit after 1000 days, or roughly
four years trading. Admission is, however:
“Subject to satisfying size, float and certain initial trading
characteristics.” Among those initial trading characteristics: IPOs
that rise more than 50% on their first day are excluded.
The IPOX US-100 is a subset of the IPOX Composite and is adjusted
quarterly. Weightings are capped at 10 percent in the US-100 as well as
the other IPOX subsets: The US-30, and the Europe-100 and Europe-30.
Those sets seek “to be a comprehensive representation of the
well-performing and most liquid universe of the largest IPOs.”

A full detailed fact sheet can be found at the IPOX Schuster site.

Tags: IPOs