NEW YORK (TheStreet) --The IPO market has declined year-to-date. So far 75 IPOs have priced in 2016, comparatively 158 had priced this time one year ago. However, IPOs have performed well this year nonetheless. IPOs are outperforming the market, are higher 41% on average, and 83% of the IPOs that have priced are trading above their initial offering, according to Renaissance Capital.

Renaissance Capital manager of IPO-focused ETFs Kathleen Smith joined Tuesday morning's "Squawk Box" on CNBC to tell the story of why the IPO market has not seen the similar activity as it did one year ago.

"In August last year the overall market did poorly, and IPOs in particular because there were many extended valuations and a pretty active level of issuance. What happened is, when the overall market corrected these companies corrected even more," Smith explained.

This made investors more cautious of allocating additional capital towards IPOs. "Then there was a shutdown of about four months where no activity happened whatsoever," she noted.

Smith said that according to Renaissance's study the current window for the IPO market opens slowly, allowing for only strong, attractively valued companies to enter after a market shutdown.

"We've been in a very good period for IPO investors and positive returns because only the better companies with strong returns are getting done," Smith added.

Regarding the offering of companies like Uber, and Airbnb Smith believes that 2017 will probably be the time when those price.

"I think if these companies can do a better job at making money as they have been at raising money then we think they'll fill into these high valuations and maybe investors will look at 2018 and value the companies with lower multiples than they have had," she said.

More from Markets

Jim Cramer: China Trade Tensions Make it Tougher to Pick Stocks

Jim Cramer: China Trade Tensions Make it Tougher to Pick Stocks

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Jim Cramer on Larry Kudlow, Tariffs, Nucor, IBM and Domino's Pizza

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

Dow Falls on Trade Worries but IBM Rises as Earnings Beat Forecasts

What Is Comparative Advantage?

What Is Comparative Advantage?

Danaher Shares Surge After Dental Spinoff Plan, Solid Q2 Earnings

Danaher Shares Surge After Dental Spinoff Plan, Solid Q2 Earnings