In the recent US stock market volatility, a number of new US stocks listed strong performance, mobile POS payment company Toast, cross-border remittance platform Remitly Global, software provider Freshworks and other companies rose sharply on the first day of listing. The moneymaking effect of secondary IPOs is still obvious, and it has significantly outperformed the S & P 500 in the past three years.
However, in the US stock IPO market, it is difficult for individual investors to subscribe for new shares. Unlike Hong Kong and A-share IPO offerings generally aimed at individual investors, US IPO usually does not offer public offerings, and almost all shares are allotted by underwriters themselves. Large investment bank clients such as UBS, Goldman Sachs Group and JPMorgan Chase & Co are usually eligible, or individual subscribers who subscribe up to millions, while investors with small amounts of capital are usually unable to directly subscribe for new shares.
This article recommends the concept of US stock IPO ETF for investors. This kind of ETF specializes in investing in newly listed new stocks and sub-new stocks to help you easily take advantage of the new stock market.
Currently, there are nine IPO concept ETF traded in the US market, with total assets under management of US $4.14 billion and an average expense rate of 0.59 per cent.
Among them, the largest and earliest concept of IPO ETF isFirst Trust US IPO Index Fund (FPX.US) $The ETF, launched in April 2006, currently holds about 100 stocks and assets under management of $2.07 billion. FPX's annualised return over the past five years is close to 20 per cent.
FPX has risen 40% over the past year and has returned about 10% so far in 2021. The ETF hit an all-time high in mid-February and has been under pressure ever since
FPX invests only in companies registered in the United States. It puts stocks six days after listing in a stock pool for about four years, and then selects stocks on a quarterly basis, using a quantitative method, with individual stocks limited to no more than 10 per cent.
Among FPX's current positions, the top five companies account for 25% of total assets, including chipmakers$Maywell Technology (MRVL.US) $Parent company of Snapchat, a well-known social platform$Snap Inc (SNAP.US) $, biopharmaceutical companies$Avantor (AVTR.US) $, the electronic transaction service provider of institutional customers$Tradeweb Markets (TW.US) $Wait.
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Edit / Anita