Seeking Alpha: “FPX: Growth ETF Focused On IPOs”
On August 7, 2024, Seeking Alpha published an analysis of the First Trust US Equity Opportunities ETF (FPX), which tracks our IPOX® 100 U.S. Index.
In the IPO-focused ETF space, the article states that "FPX is larger, more liquid, and better diversified" than its closest competitor. This unique focus can provide investors with exposure to a specific segment of the market that may be underrepresented in traditional indices.
The analysis highlights FPX's well-diversified portfolio across sectors, potentially helping to manage risk while capturing growth opportunities. Notably, the ETF "has a better cash flow growth rate" compared to its benchmark, suggesting it successfully captures high-growth companies.
FPX offers a unique investment strategy, providing exposure to "the 100 typically largest and most liquid initial public offerings (IPOs) (including spin-offs and equity carve-outs) of U.S. companies." This approach gives investors access to newly public companies during their crucial early trading days. The ETF has demonstrated strong long-term performance, with the article noting that "Since its inception, FPX has outperformed the mid-cap benchmark by 65 bps in annualized return."
