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.