PayPal Holdings (NasdaqGS: PYPLV) is in its second go as a standalone public company after recently being spun-off from eBay (NasdaqGS: EBAY). In nine trading days, shares of PayPal are up about 4.7% and more than half of that gain arrived today.
Although PayPal is a new stock, exchange traded funds investors already have at least one option for accessing the shares and, on a more speculative note, some other ETFs could soon add PayPal to their respective lineups.
The PureFunds ISE Mobile Payments ETF (NYSEArca: IPAY), the first ETF dedicated to providers of mobile payments solutions, debuted today featuring a decent allocation to PayPal. PayPal is the third-largest holding in the ISE Mobile Payments Index (IPY), IPAY’s underlying index, at a weight of almost 5.7%. Only Dow components Visa (NYSE: V) and American Express (NYSE: AXP) command larger weights than PayPal in that index. [HACK Issuer Adds two More ETFs]
In terms of ETFs that could add shares of PayPal, emphasis on “could,” and do so sooner than later, the Renaissance IPO ETF (NYSEArca: IPO) is a credible candidate. Due to its indexing flexibility that allows for the inclusion of some IPOs after their fifth day of trading, the Renaissance IPO ETF could add PayPal. Plus, the ETF has the flexibility to add spin-offs as highlighted by a stake in Synchrony Financial (NYSE: SYF), among others.
Speaking of spin-offs, the newly minted Market Vectors Global Spin-Off ETF (NYSEArca: SPUN) is another likely destination for PayPal.