Kiplinger Features IPOX® 100 U.S. Index and FPX ETF as Strategy for Navigating 2025 IPO Market

In a recent feature for Kiplinger, financial journalist David Milstead analyzes the resurgence of the U.S. IPO market, noting that while activity has surged to its highest levels since 2021, the landscape presents unique risks due to a heavy concentration in artificial intelligence and cryptocurrency sectors. The article, titled "What to Make of a Hot IPO Market", cautions investors about the volatility inherent in these "edgy" categories and explores strategies for participating in new listings while mitigating downside risk.

To navigate this "froth and frenzy", Milstead suggests investors look toward diversified Exchange-Traded Funds (ETFs) rather than betting on individual stock debuts. The article specifically highlights the First Trust US Equity Opportunities ETF (FPX), which tracks the IPOX® 100 U.S. Index, as a robust solution for gaining exposure to the broader IPO market with reduced volatility compared to other funds.

The article emphasizes the methodological strength of the IPOX® 100 U.S. Index, noting its comprehensive coverage of the U.S. new listings market. Milstead points out that the FPX ETF, driven by the IPOX® benchmark, has delivered strong performance, up 39.3% year-to-date in 2025.

"The First Trust US Equity Opportunities ETF (FPX) is a bit less volatile [than the Renaissance IPO ETF] ... The fund seeks to replicate the IPOX-100 U.S. index of large, liquid IPOs, which IPOX says captures about 85% of the total market capitalization of IPOs in the previous four years."

Read the full article by David Milstead on Kiplinger: https://www.kiplinger.com/investing/what-to-make-of-a-hot-ipo-market