FYI: IPOs notoriously spike on their first day of trading; as my colleague Sumit Roy recently reported, since 1980, the average first-day gain for IPOs has been 18% (read: "2 ETFs Riding Record Year For IPOs").
After that first day, however, returns tend to fall off for most newly public companies—though the ones that do succeed can provide returns of hundreds, even thousands, of percent.
For those looking to capitalize on that attractive possibility, there exist a handful of IPO-oriented ETFs, including the $1.1 billion First Trust U.S. Equity Opportunities ETF (FPX) and the $41 million Renaissance IPO ETF (IPO).
Regards,
Ted
https://www.etf.com/sections/features-and-news/etf-week-purest-play-ipos
