IPO ETF: A Contrarian Idea In Beaten Down Tech

Dec. 02, 2021 12:57 PM ETRenaissance IPO ETF (IPO)IPO5 Comments
BOOX Research
20.33K Followers

Summary

  • The IPO ETF invests in companies that launched an initial public offering within the last few years.
  • While 2020 was a big year for IPOs, the segment has underperformed more recently with significant volatility amid macro-dynamics.
  • Despite shortcomings to the fund structure, IPO's unique exposure makes it a good option to capture tactical trends in high-growth tech stocks.

Initial Public Offering. IPO. Financial trade. Investment

Andranik Hakobyan/iStock via Getty Images

The Renaissance IPO ETF (NYSEARCA:IPO) invests in companies that recently began trading following an initial public offering. The attraction in IPOs is the typical early-stage growth profile of the companies with an innovative product

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This article was written by

20.33K Followers
BOOX Research run by Dan Victor, CFA specializes in covering small-caps and under-the-radar ideas. Dan brings more than 15 years of experience in financial services across multiple roles in research, investment management, and trading. Dan is also the winner of Seeking Alpha's 2023 stock market prediction contest-- beating out a field of 40 analysts by correctly forecasting the S&P 500's 24% gain that year. https://seekingalpha.com/article/4660791-2023-market-prediction-contest-winners

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ZM either through stock ownership, options, or other derivatives. 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.

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