IPO ETFs Look Hot in September: Here's Why
Nasdaq After alull lasting for about 18 months, the U.S. IPO market is set to pick up speed in the fall. Growth stocks have staged a strong rally in 2023, buoyed by decreased inflation and an excitement over AI progress. This has placed the Renaissance IPO Index (IPOUSA) ahead of the Nasdaq this year, in terms of performance.
September is already looking like an eventful month for initial public offerings. Beyond a successful Arm Holdings IPO and Instacarts scheduled entry on Sep 19, marketing automation firm Klaviyo and biotechnology firm Neumora are set to list soon, as quoted on CNBC.
Renaissance IPO ETF IPO is up 33.3% this year, First Trust US Equity Opportunities ETF FPX has added about 10% while Renaissance International IPO ETF IPOS has gained about 9.3%. The S&P 500 is up 15.9% this year (as of Sep 5, 2023). ETFs IPO and FPX have added about 2.7% and 1.2% past month versus 1.5% gains in the S&P 500.
