The next phase of the IPO rally could extend beyond tech mega-deals, driven by a more diversified pipeline, benefiting ETFs like FPX and IPO.
First Trust US Equity Opportunities ETF (FPX) receives a sell rating due to high risk in top holdings, stretched valuations, and underperformance versus peers. FPX's top holdings—GE Vernova, Sandisk, and Medline—face rising costs, inconsistent profitability, and tariff pressures, threatening future returns. Despite recent strong momentum and a one-year return over 60%, FPX's 5-year average annual return lags at just 6.41%, below VFMO, DYNF, and the S&P 500.
Ameritas Advisory Services LLC lessened its stake in First Trust US Equity Opportunities ETF (NYSEARCA:FPX) by 97.2% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 188 shares of the company's stock after selling 6,559 shares during the period. Ameritas Advisory
First Trust US Equity Opportunities ETF offers exposure to top-performing US IPOs, focusing on high-growth, high-beta companies across multiple sectors. FPX has outperformed the S&P 500 recently, driven by strong gains in top holdings like GEV, APP, PLTR, and CEG, but carries higher volatility. The ETF is best suited for risk-tolerant investors seeking tactical or satellite positions, with a recommended allocation of 2-3% and a 20-30% trailing stop.
IPO activity is rebounding in 2025. Chances of easier Fed policy, a strong stock market, receding trade tensions and AI boom fuel momentum.
First Trust US Equity Opportunities ETF (FPX) holds 100 liquid stocks during the 1000 trading days after their IPOs or spin-offs. FPX includes companies of all sizes, yet is quite concentrated in technology and in its top holdings. FPX is more compelling than its close competitor IPO based on performance, size, liquidity and diversification.
IPO market momentum accelerates as U.S. listings surge, boosting ETFs like FPX, IPO, FPXI and IPOS across the board.
The First Trust US Equity Opportunities ETF focuses on recent IPOs, primarily in technology, with high growth potential but elevated risks and high valuations. FPX's portfolio includes notable IPOs like AppLovin, Palantir, and CrowdStrike, with a significant allocation to mid-cap stocks. Despite decent long-term gains, FPX has underperformed compared to other growth funds and the Russell 3000, with higher volatility.
Expectations of a favorable business climate and less stringent regulations under the incoming Trump administration have made investors optimistic about the future of the IPO market. Look at ETFs to capitalize on the optimism.
After two years of subdued IPO activity, the U.S. IPO market may be up for a revival during Trump presidency on the likelihood of an upbeat stock market.
First Trust US Equity Opportunities ETF holds 100 stocks in the first 1,000 trading days after their IPOs. FPX is well diversified across sectors, but it is quite concentrated in its top holdings. It is classified in the “Mid-Cap Growth” category. Over the last decade, FPX has outperformed another IPO-focused ETF, but lags traditional mid-cap growth funds.