The Renaissance IPO ETF (NYSEArca: IPO) will part ways with five of its current holdings while welcoming three additions when the exchange traded fund undergoes its quarterly rebalancing after the close of U.S. markets on June 19.
The Renaissance IPO Index (Ticker: IPOUSA), the underlying index for IPO, is welcoming GoPro (NasdaqGS: GPRO), 58.com (NYSE: WUBA) and EQT GP Holdings (NYSE: EQGP) to its lineup. IPO will part ways with Voya Financial (NYSE: VOYA), HD Supply Holdings (NasdaqGS: HDS), Tableau Software (NYSE: DATA), CDW (NYSE: CDW) and Quintiles Transitional Holdings (NYSE: Q).
The stocks leaving IPO are some of the ETF’s largest holdings. In order, Voya, Tableau Software, HD Supply, Quintiles and CDW are IPO’s sixth-, eleventh-, twelfth-, thirteenth- and fourteenth-largest holdings. That group combined for 14.6% of IPO’s weight as of June 11, according to issuer data.
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.