As Lyft Ups IPO Target, a Look at an IPO ETF Likely to Benefit

The video discusses the IPO ETF from First Trust, highlighting its strategy of adding IPOs after six days of trading and releasing them after 1000 days. The ETF has a strong performance record, outperforming the S&P 500. The video also covers the impact of new IPOs like Lyft and the FDN ETF, which focuses on FANG stocks. First Trust's approach to providing value in the ETF market is also discussed.

What is the strategy of the IPO ETF from First Trust regarding the timing of adding and releasing IPOs?

• Add on the 10th day and release on the 2000th day

• Add after the 6th day and release on the 1000th day

• Add on the first day and release on the 500th day

• Add after the 30th day and release on the 1500th day

How does the IPO ETF handle the inclusion of new IPOs like Lyft and Uber?

• It adds them immediately on the first day

• It never includes new IPOs

• It waits for a year before adding them

• It typically follows a six-day window before adding

What is the maximum number of holdings the IPO ETF aims to maintain?

• 50 holdings

• 75 holdings

• 150 holdings

• 100 holdings

What percentage of FANG stocks does the FDN ETF hold in its portfolio?

• 50%

• 25%

• 10%

• 35%

What is the key factor that allows First Trust's dividend ETF, FDD, to succeed despite higher costs?

• High number of holdings

• Providing value for the cost

• Low market volatility

• Focus on technology stocks