The Renaissance IPO Index (IPOUSA), the underlying index for Renaissance Capital’s IPO ETF (NYSE: IPO), has made a comeback since the start of the 4Q19, up 11.5% QTD compared to the S&P 500’s 6.3%. So far, the IPO Index has beaten its quarterly returns for the 2Q (+2.8%) and the 3Q (-10.8%).
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The IPO Index pulled back in the 3Q due to several disappointing debuts and growing investor caution toward highly-valued, unprofitable companies. That has led to increased pricing pressure, more modest first day returns, and better aftermarket trading QTD. IPOs in the 4Q have an average first day pop of 4.3% and an average aftermarket return of 8.6%, compared to 17.0% and -1.3%, respectively, YTD.
The article The IPO Index hits a 3-month high, up 11.5% since the start of the 4Q originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
