First Trust US Equity Opportunities ETF

FPX

Market cap $1.16B

First Trust US Equity Opportunities ETF offers exposure to top-performing US IPOs, focusing on high-growth, high-beta companies across multiple sectors. FPX has outperformed the S&P 500 recently, driven by strong gains in top holdings like GEV, APP, PLTR, and CEG, but carries higher volatility. The ETF is best suited for risk-tolerant investors seeking tactical or satellite positions, with a recommended allocation of 2-3% and a 20-30% trailing stop.

Figma, Circle, and CoreWeave are just a few names to remind investors that the initial public offering (IPO) market is alive and kicking despite the market challenges in 2025. This opens the door into a room with IPO-focused exchange-traded funds (ETFs) that can provide niche exposure to these up and comers.

IPO activity is rebounding in 2025. Chances of easier Fed policy, a strong stock market, receding trade tensions and AI boom fuel momentum.

First Trust US Equity Opportunities ETF (FPX) holds 100 liquid stocks during the 1000 trading days after their IPOs or spin-offs. FPX includes companies of all sizes, yet is quite concentrated in technology and in its top holdings. FPX is more compelling than its close competitor IPO based on performance, size, liquidity and diversification.

IPO market momentum accelerates as U.S. listings surge, boosting ETFs like FPX, IPO, FPXI and IPOS across the board.

SHLD, ARKW, BUZZ and other U.S. ETFs are seeing gains ahead of July 4.

The First Trust US Equity Opportunities ETF focuses on recent IPOs, primarily in technology, with high growth potential but elevated risks and high valuations. FPX's portfolio includes notable IPOs like AppLovin, Palantir, and CrowdStrike, with a significant allocation to mid-cap stocks. Despite decent long-term gains, FPX has underperformed compared to other growth funds and the Russell 3000, with higher volatility.

Expectations of a favorable business climate and less stringent regulations under the incoming Trump administration have made investors optimistic about the future of the IPO market. Look at ETFs to capitalize on the optimism.

After two years of subdued IPO activity, the U.S. IPO market may be up for a revival during Trump presidency on the likelihood of an upbeat stock market.

First Trust US Equity Opportunities ETF holds 100 stocks in the first 1,000 trading days after their IPOs. FPX is well diversified across sectors, but it is quite concentrated in its top holdings. It is classified in the “Mid-Cap Growth” category. Over the last decade, FPX has outperformed another IPO-focused ETF, but lags traditional mid-cap growth funds.