This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three IPO Funds to Watch

NEW YORK ( TheStreet) -- IPO investing is a difficult task, market by asymmetric information and volatile aftermarket performance. While picking the right IPO can be like winning the lottery, an investment in the wrong stock can have similarly dramatic results.

As the economy heats up, more companies will be gathering the assets needed to "go public" and listing on exchanges across the globe. The chances that you'll pick the next Google (GOOG - Get Report) are low, and risks are high, so a compelling case exists for fund-structured IPO strategies.

Direxion, creator of Direxion Daily Financial Bull (FAS) and Direxion Daily Financial Bear (FAZ) has announced its intention to launch the IPOX Global Long/Short mutual fund to capture the global IPO market. The fund will take an active approach to evaluating IPOs, and go long or short stocks accordingly.

Recognized most notably for leveraged ETFs and mutual funds, Direxion's newest fund will use the same index provider as the existing First Trust US IPO Index ETF (FPX). Also currently available to investors is the open-ended IPO Plus Aftermarket Fund (IPOSX).

Dr. Josef Schuster, architect of the IPOX Indexes, reports that the global IPO market captures an average of 2,100 firms and $2.5 trillion market cap over a four-year rotational cycle. This means huge potential returns for investors, if they can pick the right funds.

By using an ETF like FPX or a mutual fund like IPOSX, investors can avoid security specific risk. Schuster notes that, "as an effect of the consequences of 'going public,' the return dispersion of constituents becomes huge over time." The risk/reward ratio for these firms is huge.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FAZ $46.66 0.00%
FPX $51.06 0.00%
FAS $27.57 0.00%
GOOG $643.61 0.00%
AAPL $112.12 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs