The success of FPX has to do with the tracking benchmark’s selective process. The spinoffs within the index are not cash-hungry start-ups, rather they are big holdings from established companies. For example, Phillipps 66 (NYSE: PSX), Visa Inc. (NYSE: V), General Motors Co. (NYSE: GM) and Facebook (NasdaqGS: FB) are all included. [Tom Lydon Says Facebook to Join These ETFs]
FPX launched in 2006, and has about $21.4 million in assets under management. The expense ratio is 0.60% and the ETF has a 1.75% yield. [ETF Chart of the Day: IPOs]
First Trust US IPO Index ETF
Tisha Guerrero contributed to this article.