It’s important to remember that not all IPOs are successful for the people who invest in them. Globally, only 47% of all IPOs closed the quarter above their initial offering price, and the average return for the quarter was only 2%.
Investing in IPOs is not an easy task. That’s why investing in First Trust IPOX-100 Index Fund (NYSEArca: FPX) may be better suited for most investors who do not have the time to do due diligence on a hundred companies. [IPO ETF: Back From the Doldrums?]
For more information on initial public offerings, visit our IPOs category.
- First Trust IPOX-100 Index Fund (NYSEArca: FPX)
Sumin Kim contributed to this article.