Tag Archives: IPOSX

ETF News

#IPO Expert Renaissance Capital Launches ETF For…IPOs..

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  Courtesy of Tom Lydon

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Renaissance Capital, the Connecticut-based investment behind the Global IPO Plus Aftermarket Fund (IPOSX) mutual fund, will introduce the Renaissance IPO ETF (NYSEArca: IPO) on Wednesday.

The new ETF will be benchmarked to an in-house index, the Renaissance IPO Index, which is designed in conjunction with index provider FTSE.  “The FTSE Renaissance Global IPO Index Series provides total global IPO market coverage and is composed of regional (e.g. Asia Pacific), country-level (e.g. US) and strategic subsets (e.g. ex-US, Emerging Markets, capped and investable versions),” according to the Renaissance web site. 

IPO will compete directly with the First Trust US IPO Index Fund (NYSEArca: FPX), which is seven and a half years old and has $184.7 million in assets under management.  FPX has had another banner year, gaining 31.4%, but there are key differences between it and FPX.

Investors should note how FPX does business because in the case of this ETF, IPO does not necessarily mean brand new stocks. Said another way, a hot IPO set to debut on October 20 could trade for months before being included in FPX’s index. Additionally, FPX is home to plenty of spin-offs and companies that were taken private in private equity buyouts only to go public again a few years later. [Another Market Beating Niche ETF]

For the full story from ETF Trends, please click here

ETF News

What’s Next? ETFs for IPOs. Renaissance Capital Joins the Fray.

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Reported by IndexUniverse’s Devon Layne and Olly Ludwig

Kudos to IU for scooping the news media–

Renaissance Capital, a research and investment management firm known for its IPO Plus Aftermarket Fund, filed regulatory paperwork requesting permission to offer a broad swath of ETFs targeting U.S. and non-U.S. stocks and bonds, with the first to be a fund that tracks its own Renaissance IPO Index.

The initial exchange-traded fund it is planning, called the Renaissance IPO ETF, will follow the performance of the U.S. IPO market through the use of an index that will be composed of a revolving list of qualified IPOs that change on a two-year rotation. The firm plans to market ETFs that are based on its own indexes.

[MarketMuse Editor’s note: we can only hope that FB incident and subsequent clog in IPO pipeline doesn’t put too much of a crimp in this initiative.]

Indeed, Greenwich, Conn.-based Renaissance’s “exemptive relief” filing with the Securities and Exchange Commission also requests permission to roll out funds with “affiliated indexes”—ETF lawyer-speak for in-house indexes. The petition with the SEC cited as precedents a number of firms that market self-indexed funds, including Russell and Van Eck Global.

The paperwork thus seeks to establish Renaissance’s presence in the dynamic ETF market, where total assets are now more than $1.150 trillion in over 1,450 securities. Moreover, the firm, by requesting to use its own indexes, is tapping into one of the newer trends in the ETF market that industry sources say reflects a desire among ETF sponsors to stop paying costly index-licensing fees. Continue reading →