As exciting as some initial public offerings (IPOs) can be, there’s an exchange traded fund (ETF) that can help you access this market in a more sane and less volatile way.

An IPO  is the process where a private entity offers its shares to the public for the first time.  They are popular because they are perceived to make money for investors both in the short-term as well as the long-term, states OneMint.com.

Over the past six months or so, the IPO maket dried up because of weak economic conditions. As the economy moves into recovery mode, more and more IPOs are emerging.

One of the best ways to grab exposure to these IPOs is through the First Trust IPOX-100 Index Fund (FPX). The ETF is designed to track the IPOX-100 Index and is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX Global Composite Index.

FPX adds IPOs into the index on their seventh day of trading in order to capitalize on a long-term “buy and hold” perspective. On their 1,000th day, it’s time to move on and the once hot new things are bumped out of the index in favor of a new IPO.

• First Trust IPOX-100 Index Fund (FPX): up 24.2% year-to-date

For more stories on IPOs, visit our IPO category.

Kevin Grewal contributed to this article.

Tags: ETF 101, FPX, IPOs, Sector ETFs