Disappointing quarterly results from Visa (NYSE: V) could weigh on an exchange traded fund that invests in initial public offerings on Friday as the stock is a top holding in the ETF after its IPO in 2008.
Visa is the second-largest holding in First Trust US IPO Index Fund (NYSEArca: FPX) at 9.4% of the portfolio. Other top components include Philip Morris (NYSE: PM) and General Motors (NYSE: GM).
IPOs that are eligible for the ETF’s tracking index enter after seven days of trading, and are held as long as 1,000 trading days.
First Trust US IPO Index Fund is up 23.8% over the past year, compared with a 16.8% gain for the S&P 500, according to Morningstar.
Visa shares slipped in after-hours trading Thursday following its quarterly update.
First Trust US IPO Index Fund
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