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IPO ETF (FPX) Hits New 52-Week High

Sanghamitra Saha
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For investors seeking momentum, First Trust US Equity Opportunities ETF FPX is probably on the radar now. The fund just hit a 52-week high and is up nearly 25.4% from its 52-week low price of $60.30/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.

FPX in Focus

The fund tracks the IPOX-100 U.S. Index, which is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX Composite U.S. Index. The IPOX Composite U.S. Index is a rules-based value-weighted index measuring the average performance of U.S. IPOs during their first 1,000 trading days. The product charges 59 bps in fees (see all Total Market (U.S.) ETFs here).

Why the Move? 

After two lackluster years, the U.S. IPO market has made an impressive comeback this year. Of late, there has been a surge in U.S. IPO activity. NIO, the China-based producer of high-performance electric vehicles, plans for a $1.2 billion U.S. IPO. Also, Chinese fintech company X Financial filed for a $250 million US IPO. Viomi Technology, a seller of internet-connected home appliances, is also eyeing $150 million worth of an IPO in the United States. All these news probably have given the fund a boost.

More Gains Ahead?

It seems that the fund will perform decently in the near term given a positive weighted alpha of 20.90.

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FT-IPOX 100 (FPX): ETF Research Reports
 
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