Renaissance Capital, the research firm specializing in initial public offerings and the issuer of the Renaissance IPO ETF (NYSEArca: IPO), unveiled its quarterly roster changes for IPO, including the addition of newly public Lending Club (NYSE: LC).
San Francisco-based Lending Club, the first peer-to-peer lender to go public, raised $865.5 million in its IPO last Thursday and saw its shares surge 56% in its first day of trading.
Lending Club will join Paramount Group (NYSE: PGRE) and VWR Corp. (NasdaqGS: VWR) in being added to IPO’s roster at the close of U.S. markets on Dec. 19, according to Renaissance Capital.
Due to its indexing flexibility that allows for the inclusion of some IPOs after their fifth day of trading, the Renaissance Capital ETF will be among the earliest holders of Lending Club shares.
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.
Renaissance also announced the departure of 16 stocks from IPO, including Elon Musk’s SolarCity (NasdaqGS: SCTY), WhiteWave Foods (NYSE: WWAV) and six energy stocks. Oil and gas companies currently account for 9.1% of IPO’s weight, which has recently been a drag on the ETF as oil prices have tumbled.
Technology is IPO’s largest sector weight at 32.5%, nearly double the 16.4% weight allocated to health care, the ETF’s second-largest sector weight.
IPO’s largest holding is an 11.3% weight to Chinese e-commerce giant Alibaba (NYSE: BABA), one of the largest weights to that stock among all U.S.-listed ETFs. The ETF was among the first to own Alibaba, adding the stock five days after the company’s September IPO. Zoetis (NYSE: ZTS) and Twitter (NYSE: TWTR) round out IPO’s top three holdings. [A True Alibaba ETF]
Renaissance IPO ETF
