With that in mind, investors can expect Alibaba’s weight in IPO to be trimmed to 10% the next time the ETF rebalances. Still, IPO sports a significantly larger Alibaba weight than one of its most direct competitors.
The First Trust US IPO Index Fund (NYSEArca: FPX) was the first U.S.-listed ETF to add Alibaba to its lineup, doing so at the close of markets last Friday. Though it is FPX’s eighth-largest holding, Alibaba debuted at a weight of just 2.89% in the ETF, a number that declined to 2.83% as of Sept. 24. [A Look at Alibaba’s ETF Debut]
From Sept. 18, the day ETF Trends reported IPO would make Alibaba its largest holding, through Sept. 24, the ETF added $4.7 million in new assets.
Renaissance IPO ETF