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.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.