Bringing you live news and features since 2006 

First Trust Global Portfolios launches First Trust US IPO Index UCITS ETF


First Trust Global Portfolios Limited (FTGP) has launched the First Trust US IPO Index UCITS ETF. The Fund began trading on the Euronext Paris on 17 August 2015 and on the London Stock Exchange on 18 August 2015.

The Fund is based on the IPOX-100 US Index, a rules based, modified value-weighted price index measuring the performance of the top 100 US-domiciled companies ranked quarterly by market capitalisation in the IPOX Global Composite Index. The Index measures the average performance of US public offerings (IPOs) during the first 1000 trading days. Index constituents are selected based on quantitative initial screens. The Fund only tracks recent IPOs and spin-offs. Therefore, there is very little overlap with traditional index funds, which generally have a waiting period before adding IPOs/spin-offs. As a result, a portfolio of recent IPOs may complement a core equity holding by providing more complete exposure to the total equity market.
“We’re pleased to extend our relationship with First Trust Portfolios to help European investors gain exposure to US IPOs and Spin-offs via our benchmark IPOX-100 US Index,” says Josef Schuster, Founder of IPOX Schuster LLC. As at 31 July 2015, the Index had a market capitalisation of approximately USD1.3 trillion.
It is common for the closing market share price shortly after the IPO to be well above or below the initial offering price and it is difficult to predict which IPOs will be successful. Often the motivation to invest in an IPO is the potential to receive a short-term gain, regardless of a stock’s longer-term potential for success or failure. The Index takes a different approach. Constituents may be added to the Index on the sixth day of public trading; and therefore, the Fund may not have access to the gains derived from the initial run-up in an IPO’s price. However, there is a case to be made for investing in a diversified portfolio of recent IPOs and spinoffs beyond potentially participating in an unusually large return from a stock’s initial day of trading.

Latest News

Invesco’s Paul Syms, Head of EMEA ETF Fixed Income and Commodity Product Management, has commented on the gold price, saying:..
Everysk, a provider of customisable, no-code, low-code intelligent automation solutions, has been chosen as a strategic partner of Dynamic Beta..
Rize ETF has listed its new Rize Circular Economy Enablers UCITS ETF (CYCL) on the London Stock Exchange (LSE) and..
DWS has launched a new Xtrackers ETF based on European Nordic equity markets, aligned with the goals of the 2015..

Related Articles

Stephanie Miller Pierce, BNY Mellon
The three-year anniversary of BNY Mellon Investment Management’s launch of ETFs was marked by the quarter one growth of 172...
South Korea Flag
The overall trend in retail subscriptions to mutual funds in Korea is shifting gradually toward ETFs, as exchange-traded offerings have...
“The beauty of ETFs is that you can have effectively a rules-based strategy at low cost” says Laurent Kssis, head...
Henry Timmons, RBA
Henry Timmons, director of ETFs and Michael Contopoulos, director of fixed income at Richard Bernstein Advisors are on a mission...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by