Citizens Financial Group (NYSE: CFG), the newly public Rhode Island-based bank, has quickly found a home in at least one exchange fund.
Citizens, which debuted as a public company on Sept. 24, is scheduled to enter the Renaissance IPO ETF (NYSEArca: IPO) after the close of U.S. markets on Oct. 1. The $33.6 million IPO “is a portfolio of the largest, most liquid U.S.-listed newly public companies prior to their inclusion in core U.S. equity portfolios. IPOs that pass Renaissance Capital’s formulated screening process are weighted by investable market capitalization, capped at 10% and removed after two years,” according to a statement released by Connecticut-based Renaissance Capital.
Citizen’s is a spinoff of Royal Bank of Scotland. The bank’s IPO priced at $21.50, below the expected range of $23 to $25. As of this writing, the shares are up nearly 8% since the stock debuted.
IPO, which is just a few weeks shy of its first anniversary, allocates 15.2% of its weight to the financial services sector. That puts financials in a tie with oil and gas for the second-largest sector weight in the ETF, according to issuer data. Technology is the ETF’s largest sector allocation at 26.5%.
IPO has gained almost 14% since coming to market last October. The ETF has risen to acclaim for, among other reasons, being able to swiftly add highly-anticipated IPOs soon after those stocks go public. IPO’s index flexibility allows it to accommodate some stocks after just five trading days.