ETFs to Play IPO Market's Rebound in 2025

A growing number of companies are going public and delivering strong performances, creating attractive opportunities for growth-focused investors. Recently, new listings in the United States have rebounded sharply, signaling market recovery, according to Reuters.

Additionally, from a regulatory standpoint, the Trump administration is viewed more favorably by the market, signaling renewed strength.

Behind the Market Momentum

According to IPOX vice president, Kat Liu, as quoted on Reuters, a successful slate of June IPOs and a robust pipeline of well-capitalized, late-stage firms poised to go public, could set the stage for a more active Q4. Strong listings could boost investor confidence and encourage late-stage startups preparing to go public.

Per data from Dealogic, as quoted on Reuters, U.S. IPOs have raised $25.36 billion (as of June 11) this year, impressively higher than the $18.22 billion raised during the same period in 2024 and $9.53 billion in 2023.

Driven by solid market debuts and a rebound in equity sentiment, companies are revisiting IPO plans, fuelling market momentum. Rising expectations of interest rate cuts by the Fed and an improving global trade landscape, investor risk appetite may also increase, another tailwind for the IPO market.

ETFs to Consider

Below, we highlight a few funds that investors can consider to gain increased exposure to the IPO market.

First Trust U.S. Equity Opportunities ETF (FPX)

First Trust U.S. Equity Opportunities ETF seeks to track the performance of the IPOX-100 U.S. Index is a modified value-weighted price index with a basket of 100 securities. The fund seeks exposure to U.S. companies that have recently gone public.

FPX has amassed an asset base of $948.5 million and charges an annual fee of 0.61%. The fund has a one-month average trading volume of about 25,000.

First Trust U.S. Equity Opportunities ETF has gained 15.28% over the past month and 37.68% over the past year.

Renaissance IPO ETF (IPO)

Renaissance IPO ETF seeks to track the performance of the Renaissance IPO Index with a basket of 29 securities. The index captures approximately 80% of the total market capitalization of newly companies that have gone public within the last three years and meet certain criteria.

The fund has amassed an asset base of $143.3 million and charges an annual fee of 0.60%. IPO has a one-month average trading volume of about 56,000.

Renaissance IPO ETF has gained 11.35% over the past month and 9.22% over the past year.

First Trust International Equity Opportunities ETF (FPXI)

First Trust International Equity Opportunities ETF seeks to track the performance of the IPOX International Index with a basket of 50 securities. The index measures the performance of the 50 largest and typically most liquid companies that are domiciled outside the U.S. within the IPOX Global Composite Index.

The fund has amassed an asset base of $153.4 million and charges an annual fee of 0.70%. FPXI has a one-month average trading volume of about 6,000.

First Trust International Equity Opportunities ETF has gained 6.09% over the past month and 12.61% over the past year.

Renaissance International IPO ETF (IPOS)

Renaissance International IPO ETF seeks to track the performance of the Renaissance International IPO Index with a basket of 35 securities. The index is based upon a portfolio of non-U.S. listed newly public companies, prior to their inclusion in global core equity portfolios.

The fund has amassed an asset base of $4.4 million and charges an annual fee of 0.80%. IPOS has a one-month average trading volume of about 800.

Renaissance International IPO ETF has gained 6.86% over the past month and 2.43% over the past year.

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