Because IPOs can wait longer for inclusion into most major benchmarks their early returns are subsequently missed. FTSE and global IPO expert Renaissance Capital have designed an easily replicable set of indices to give investors unparalleled exposure to investable US and Asia Pacific ex Japan IPOs before they become seasoned equities.
The FTSE Renaissance IPO Index Series initially comprises of benchmark indices for a broad market measure and an investable index designed to be used as the basis for ETFs, index funds, and structured products:
- FTSE Renaissance IPO Composite Index
The FTSE Renaissance IPO Composite Index is designed to capture the essence of IPO activity and performance. Qualified IPOs are added to the index at the end of their first trading day and removed from the index after approximately two years when they become seasoned equities. The index reflects the true investability of its constituents by using a free float-adjusted weighting approach and includes all institutionally-investable US-listed IPOs of operating companies, capturing over 95% of the total market value of the IPO universe.
- FTSE Renaissance IPO Investable Index
The FTSE Renaissance IPO Investable Index is designed to mimic the FTSE Renaissance IPO Composite Index while avoiding turnover associated with constituents that have a minimal impact on index performance. The FTSE Renaissance IPO Investable Index reflects approximately the top 80% of the FTSE Renaissance IPO Composite Index in full market capitalisation terms.
- FTSE Renaissance Asia Pacific ex Japan IPO Index
A benchmark index that comprises the eligible IPO stocks in the Asia Pacific ex Japan region, capturing companies that list with an investable market capitalisation of USD 100 million or greater. The index is free float adjusted to reflect the true investability of qualified IPOs which are added after their first day of trading and removed once they become seasoned equities. This benchmark also breaks down into country level indices for each eligible market.
- FTSE Renaissance Hong Kong/China Top IPO Index
A tradable index that comprises the largest Hong Kong listed companies including Chinese Red Chips and H Shares selected from the FTSE Renaissance Asia Pacific ex Japan IPO Index, offering a new way to access the Hong Kong China growth and performance story. IPOs are added after the fifth day of trading to allow users of the index to develop their trading strategy when replicating the index.
