During the initial stages of an IPO, the stocks can experience high volatility. Instead, investors can gain access to a basket of new IPO offerings through ETFs. The ETF basket helps mitigate the potentially large swings, or initial “pop,” within IPO space. [IPO ETF Sidesteps Pandora Flop]

IPO ETFs include:

  • ETRACS Next Generation Internet ETN (NYSEArca: EIPO) includes Internet companies that have been publicly traded for less than three years.
  • First Trust IPOX-100 (NYSEArca: FPX) tries to reflect the performance of U.S. IPOs over the first 1000 trading days.

First Trust IPOX-100Index Fund ETF

For more information on initial public offerings in ETFs, visit our IPOs category.

Max Chen contributed to this article.