Renaissance IPO ETF: Neutral For Now

Aug. 05, 2021 11:27 PM ETRenaissance IPO ETF (IPO)IPO

Summary

  • I had rated the Renaissance IPO ETF as bullish in March 2021, but am revising it to neutral now.
  • Of the 675 IPOs so far in 2021, more than 490 IPOs have generated negative returns, while 169 IPOs have delivered gains. The SPAC IPO bubble has burst.
  • Market indices are mainly being driven by the mega caps, while the mid and small caps are languishing.
  • I do much more than just articles at The Lead-Lag Report: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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Way back in March 2021, when the IPO market was booming and the broader market was popping, I had rated the Renaissance IPO ETF (NYSEARCA:IPO) as bullish. At that time it was priced at about $59

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This article was written by

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Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report, focused on helping investors outperform in all market conditions. It offers a tactical, data-driven approach to investing, to achieve long-term success even in the face of uncertainty. With increasing market volatility, it's essential to understand risk-on/risk-off signals, seize high-yield opportunities, and leverage award-winning research to maximize returns. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This writing is for informational purposes only and Lead-Lag Publishing, LLC undertakes no obligation to update this article even if the opinions expressed change. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. It also does not offer to provide advisory or other services in any jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Lead-Lag Publishing, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

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