Intriguing play on the IPO and spin-off field

Aaron Pressman

I have to admit that I started off fairly skeptical about the new IPO exchange-traded fund. There might be reasons to invest in a passively-managed index of initial public offerings, but I couldn’t think of one. Aren’t there lots of dogs and obvious frothy plays mixed in among the gems? But that was before I looked at the index actually underlying the First Trust Advisors IPOX-100 Index Fund (Symbol: FPX). Turns out you can trust the market to properly weigh the good plays from the bad.

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