The hotly-anticipated initial public offering of GoPro
) this week is one of the largest consumer electronics debuts of
Shares surged more than 30 percent on Thursday from its IPO
opening price of $24 per share, as the company raised $427
million in cash.
The initial success of GoPro may soon pave the way for entry
into a number of exchange-traded funds in the near future as
The most likely ETF to get the first shot at adding this high
definition video maker is the Renaissance IPO ETF (NYSE:
). This fund allows new publicly-traded companies to be added to
its index on the fifth day of trading, and subsequently removes
any stocks that have more than two years of history.
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It also allows for a
speedy adoption of new companies
with the diversification qualities inherent in every ETF. IPO
currently has exposure to 66 stocks of liquid and economically
significant companies, with an expense ratio of 0.60 percent.
A similar ETF that focuses on initial public offerings is the
First Trust US IPO Index Fund (NYSE:
). This fund screens the top 100 largest and best performing
companies in the IPOX Global Composite Index.
If GoPro continues to build upon the initial positive momentum
from its debut, in addition to attracting suitable volume, it
could also, eventually, find its way into FPX down the
Another suitable home for this technology stock would be the
iShares North American Tech ETF (NYSE:
). This fund provides specific exposure to 267 domestic
electronics, software and hardware companies. Because GoPro is a
technology-based company and headquartered in San Mateo,
California, it could certainly qualify for this regional
Lastly, the PowerShares DWA Technology Momentum Portfolio
) should be considered as a potential suitor for GoPro.This ETF
is constructed of nearly 50 holdings in primarily small and
mid-cap technology companies that are exhibiting the best
relative strength of their peers. That criterion certainly fits
the first impressions from this new offering, and it may be
considered a good fit for PTF in the future.
While it could take several months before these ETFs adopt a
new entrant into their ranks, it certainly bears keeping an eye
on these technology indexes as they change over time.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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