New Listing

First Trust launches Europe IPO ETF

Tracking the IPOX 100 Europe index

Tom Eckett

Derek Fulton

First Trust has launched a European equity opportunities ETF that captures recent initial public offerings (IPOs), ETF Stream can reveal.

The First Trust IPOX Europe Equity Opportunities UCITS ETF (FPXE) is listed on the London Stock Exchange (LSE) with a total expense ratio (TER) of 0.65%.

FPXE tracks the IPOX 100 Europe index which offers exposure to recent IPOs in Europe during their first 1000 trading days.

In order to enter the index, constituents must have at least six full days of trading from each rebalance which occurs quarterly.

Constituents are taken from the IPOX Global Composite index and the 100 largest that are economically tied for Europe are selected for the ETF.

Market-cap weighted, FPXE caps each stock at 10% while the securities with a weight greater than 4% are capped at 40%.

FPXE is a mirror strategy of the US-listed First Trust IPOX Europe Equity Opportunities ETF (FPXE) which launched in April 2018.

Derek Fulton (pictured), CEO of First Trust Global Portfolios, commented: "The launch of FPXE is in direct response to the increased investor demand for pure exposure to newly listed IPOs in a low-cost tax-efficient exchange-traded structure.

"FPXE only owns recent IPOs and spin-offs, as a result, there is minimal overlap with traditional index funds.

"This provides investors with more exposure, offering access to the innovation of the European economy."

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Dr. Josef Schuster, CEO of IPOX Schuster, added: “Amid strong deal flow and significant European firms lined up to go public, exposure to FPXE provides investors with a solution to access the performance European IPOs trading in Europe and abroad."

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