IPO ETF

An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public. By investing in an IPO ETF, investors hope to gain exposure to IPOs during their initial introduction to the market, while diversifying their investment across a pool of IPOs from varying sectors and industries.

The main appeal behind IPO ETFs is that investors want to be in "on the ground floor" of an up-and-coming company, and take advantage of the potential upside growth in the share price. IPOs, however, are not guaranteed to be successful holdings and may even decrease in value in the weeks and months following the initial offering. In addition, expenses and fees associated with ETFs can eat away at earnings accrued by these specialty ETFs.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Инвестор — (Investor) Инвестор это лицо или организация, совершающее вложения капитала с целью получения прибыли Определение понятия инвестор, частный, квалифицированный и институциональный инвестор, особенности работы инвестора, известные инвесторы,… …   Энциклопедия инвестора

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Arbitrage — For the upcoming film, see Arbitrage (film). Not to be confused with Arbitration. In economics and finance, arbitrage (IPA: /ˈɑrbɨtrɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a… …   Wikipedia

  • Closed-end fund — A closed end fund (or closed ended fund) is a collective investment scheme with a limited number of shares. It is called a closed end fund (CEF) because new shares are rarely issued once the fund has launched, and because shares are not normally… …   Wikipedia

  • Nuveen Investments — is a Chicago based private company in the asset management industry. Nuveen was founded in Chicago, Illinois in 1898 and was previously named The John Nuveen Co., after founder John Nuveen. Nuveen started in the municipal bond underwriting… …   Wikipedia

  • National Stock Exchange of India — National Stock Exchange राष्ट्रीय शेअर बाज़ार …   Wikipedia

  • Security (finance) — This article is about the negotiable instrument. For the legal right given to a creditor by a borrower, see Security interest. Securities Securities Bond …   Wikipedia

  • Hot Issue — An issue that sells at a premium over the public offering price on the first day of trading. A hot issue is most often association with an initial public offering (IPO), in which the stock of the newly offered company is in great demand, causing… …   Investment dictionary

  • Фондовый рынок — (Stock market) Фондовый рынок это рынок ценных бумаг Фондовый рынок: понятие, структура, ценные бумаги, мировые рынки США и России Содержание >>>>>>>>>>>>> …   Энциклопедия инвестора

  • Day trading — This article is about the practice. For the occupation, see Day trader. Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.