IPO ETF

An exchange-traded fund that concentrates on stocks which have recently held an initial public offering (IPO). The indexes trailed by IPO ETFs vary from one fund manager to another but normally, passively administered and has equities that have been recently offered to the public. Individuals who invest in an IPO ETF hope to get exposure to IPOs during their initial introduction to the market, while diversifying their investment throughout a pool of IPOs from various sectors and industries.