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 Renaissance Capital.
Related: Revisiting Technology ETFs
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 Line shares. Line currently is not profitable, but this is not stopping investors from being optimistic about the company’s growth prospects.
“Line has something U.S.-based messengers don’t: 8.4 million people a month who pay for stickers and 1.6 million paying players of Line-branded games that are only available to the owners of Line accounts. It has also experimented with taxi services, mobile commerce, payments and grocery deliveries,” according to Bloomberg.
