IPO ETFs invest in the equity of companies that recently have had their initial public offerings. The first IPO ETF was the First Trust US IPO Index ETF (FPX), which was launched in 2006. Although these ETFs seek to capitalize on the growth and innovation of new companies, these ETFs do not offer access to pre-IPO equity.
With 8 ETFs traded on the U.S. markets, IPO ETFs have total assets under management of $4.15B. The average expense ratio is 0.57%. IPO ETFs can be found in the following asset classes:
- Fixed Income
The largest IPO ETF is the First Trust U.S. Equity Opportunities ETF FPX with $2.02B in assets. In the last trailing year, the best-performing IPO ETF was IPO at 101.94%. The most recent ETF launched in the IPO space was the Defiance Next Gen SPAC Derived ETF SPAK on 09/30/20.