Although the initial public offering (IPO) market is taking its usual end-of-summer vacation, when it gets back to work in the fall, investors could see more activity in the exchange traded fund (ETF) that tracks the top 100 U.S. IPOs. That ETF is the First Trust IPOX-100 Index (FPX). Currently, FPX is up 2.9% year-to-date.
As of Aug. 15, 115 offerings with a value of more than $22 billion are in the pipeline, according to Amy Reeves for Investor’s Business Daily. However, analysts are concerned that the market volatility that spread into recently released IPOs also could affect the upcoming ones. The strongest sectors with IPO filings are technology, biotech, oil and gas. The average IPO value is more than $200 million, which is up from 2006 when the average IPO value was $180 million.
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.