The widely anticipated Alibaba (NYSE: BABA) initial public offering is finally here with stock’s first print on the New York Stock Exchange coming at $92.70.
As ETF Trends has reported on for several months, Alibaba’s debut as a public company is a significant event for an array of exchange traded funds. Not surprisingly, some of the ETFs that will rapidly make room for Alibaba are seeing substantial volume increases today.
The First Trust US IPO Index Fund (NYSEArca: FPX), the largest IPO ETF, is adding shares of Alibaba after the close of U.S. markets today. The addition of any IPO, regardless of stature, to an ETF after just one trading day is rare and with traders knowing FPX would be the first ETF to hold the Chinese e-commerce firm, FPX’s volume is soaring today. [Fast ETF Entry for Alibaba]
As of 12:70PM Eastern time, nearly 97,200 shares had changed hands in FPX, compared to average daily turnover of just over 55,000 over the trailing three months. Earlier this week, FPX’s index provider initially said it would not include Alibaba in FPX’s underlying index, but changed course after external and internal reviews.
Volume in the Renaissance IPO ETF (NYSEArca: IPO) is also noticeably above average. IPO will add Alibaba after the stock’s fifth trading, meaning investor will see in the ETF’s lineup on Sept. 26. Volume in IPO is already approaching five times the daily average.