Seeking Alpha: IPOX®-linked FPX ETF Recognized for Superior Long-Term Performance

In a recent analysis on Seeking Alpha, Quantitative Risk & Value leader Fred Piard highlights the First Trust US Equity Opportunities ETF (FPX) as the "largest and most compelling IPO and spin-off ETF" in the market. The article examines the fund's strategy of tracking the IPOX® 100 U.S. Index, noting that it has delivered superior long-term returns compared to both its benchmarks and competitor funds.

Piard’s analysis delves into the IPOX® methodology, specifically praising the index's rules-based approach to inclusion. He explains that while the fund focuses on the largest and most liquid U.S. IPOs, the index's rules regarding mergers and spin-offs allow it to retain high-value "unexpected holdings" like IBM and Warner Bros. Discovery. This unique mechanism enables the ETF to capture value from corporate restructuring events alongside fresh market listings, resulting in a portfolio that has outperformed the S&P Mid-Cap 400 Growth Index since 2006.

"FPX is the largest and most compelling IPO and spin-off ETF, even though at least 14% of the portfolio is in stocks traded for many years or even decades... [It] has delivered superior long-term and recent returns compared to benchmarks and competitors."

Read the full article by Fred Piard on Seeking Alpha: FPX: Leading IPO ETF With A Few Unexpected Holdings