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Invest in Hottest IPOs With These ETFs

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  • (1:00) - What’s Going On In The IPO Market?
  • (9:20) - What Should Investors Expect Going Forward in 2020?
  • (13:30) - How Do Companies Go Public: Breaking Down The Process
  • (20:05) - The Booming Popularity of SPAC
  • (25:15) - Renaissance IPO ETF: IPO
  • (32:20) - How Will The Possible Ban On Chinese Companies Impact The IPO Market?
  • (38:30) - Renaissance International IPO ETF: IPOS
  •     Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Kathleen Smith, chairman and co-founder of Renaissance Capital, a global IPO investment advisory firm.

The IPO market remains very heathy this year despite the pandemic. We have seen 109 IPOs so far in 2020, which have raised $36 billion. Earlier this year, we saw a surge in biotech IPOs. Some of these newly public companies are working on coronavirus vaccines and therapeutics and have been very popular with investors.

About 70% of companies that went public this year are trading above their IPO price. The best performing ones like Big Commerce (BIGC - Free Report) , Vroom (VRM - Free Report) and Shift4 Payments (FOUR - Free Report) benefit from coronavirus driven trends. The Renaissance IPO ETF (IPO - Free Report) is up almost 50% this year. Zoom Video (ZM - Free Report) , Peloton (PTON - Free Report) , Moderna (MRNA - Free Report) and Nio (NIO - Free Report) are among its holdings.

Airbnb, Palantir and DoorDash are among the unicorns that are planning to go public later this year. The “blank check” acquisition companies also known as special purpose acquisition companies, or SPACs, have raised more than $30 billion so far in 2020, compared to $13 billion in 2019,  per NYT. What do investors need to know about SPACs, direct listings and the IPO process?

Chinese fintech firm Ant Group is planning to list in Hong Kong and Shanghai. Alibaba founder Jack Ma’s company is expected to be the biggest IPO ever. It is likely to be included in the Renaissance International IPO ETF (IPOS - Free Report) , which is up about 38% year to date.

Tune into the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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