Renaissance IPO ETF gives access to newly listed US companies: Check details

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Updated: November 08, 2021 4:48 PM

The Renaissance IPO ETF tracks the Renaissance IPO Index designed to hold a portfolio of the largest, most liquid, newly-listed U.S. IPOs.

Renaissance IPO ETF, ipo fund, holdings, stocks, list, ETF, US stock market,By investing in the Renaissance IPO ETF, you will have exposure to the most significant newly public US listed companies in a portfolio, prior to their inclusion in core US equity indices.

Getting an IPO allotment is not an easy task especially when there is a heavy subscription during the initial public offering process. Investors who miss the IPO shares can either buy them once they get listed on stock exchanges or through mutual funds. Interestingly, there are mutual fund schemes that predominantly take exposure only to the recently-listed IPO stocks. In the Indian markets, it is the Edelweiss Recently Listed IPO Fund, while the Renaissance IPO ETF gives you the exposure to some of the recently-listed IPO stocks in the US stock market.

By investing in the Renaissance IPO ETF, you will have exposure to the most significant newly public US listed companies in a portfolio, prior to their inclusion in core US equity indices.

Fund Facts

  • The inception date of Renaissance IPO ETF is October 14th, 2013 and the fund has generated nearly 17 per cent CAGR since then.
  • Total Expense Ratio (Gross): 0.60%
  • Listed on NYSE, the Renaissance IPO ETF ticker is IPO.

The Renaissance IPO ETF is an ETF that tracks the Renaissance IPO Index designed to hold a portfolio of the largest, most liquid, newly-listed U.S. IPOs. Each quarter when the ETF is rebalanced, new IPOs are included and older constituents are removed. At quarterly rebalances, constituents are weighted by float-adjusted market capitalization with a cap imposed on any weightings exceeding 10%.

Top Holdings

Some of the top holdings of Renaissance IPO ETF are Uber Technologies, Snowflake, Zoom Video Communications, Cloudflare, Palantir Technologies, CrowdStrike Holdings, Coinbase Global, DoorDash, Airbnb among others.

Industry Exposure

Renaissance IPO ETF has major exposure to the Technology sector (50.5%) while other allocation includes Health Care (21.5%), Financials (9.1%), Consumer Discretionary (8.3%), Communication Services (6.9%), Consumer Staples (1.6%), Industrials (1.3%) and Real Estate (0.4%). The allocation in terms of market cap is 88.5 per cent in Large Cap stocks (Over $10b) and 11.5 per cent into Mid Cap stocks ($2b to $10b).

What are ETFs

An exchange traded fund (ETF) is a mutual fund variant and tracks a single index mostly in the same proportion as the underlying stocks of the index. You can buy and sell ETF units anytime during trading hours and is therefore different from mutual funds, specifically the index funds.

Know the Risks

One needs to be aware of the risks before investing in the Renaissance IPO ETF. The stocks in Renaissance IPO ETF are unseasoned equities lacking trading history, a track record of reporting to investors and widely available research coverage which may result in extreme price volatility. Due to a greater number of IPOs in certain segments, the ETFs may also be subject to information technology and financial sector risk, small and mid-capitalization company risk.

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