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IPO ETF (IPO) Hits New 52-Week High

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For investors seeking momentum, Renaissance IPO ETF (IPO - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 94.4% from its 52-week low price of $20.37 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

IPO in Focus

This fund provides exposure to the largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. New companies seek inclusion on a fast entry basis on the fifth day of trading. The fund has key holdings in technology and health care services. It charges investors 60 basis points a year in fees (see: all the All Cap Growth ETFs here).

Why the Move?

The IPO market has been an area to watch lately given some of the largest and highly anticipated new listings hitting the market this week. Royalty Pharma represents the biggest IPO of this year so far while other offerings like Forma Therapeutics Holdings, Repare Therapeutics, Biotech Progenity and Genetron Holdings are also in the pipeline for the week.

More Gains Ahead?

It seems that IPO might remain strong given a higher weighted alpha of 35.10 and a higher risk as depicted by the 20-day volatility of 34.33%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.

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