First Trust Advisors LP last week rolled out an exchange traded fund that tracks initial public offerings.

The First Trust IPOX-100 Index Fund (FPX), which began trading Thursday on the American Stock Exchange, seeks investment results that correspond generally to the price and yield of the U.S. IPOX-100 Index. Created by research firm IPOX Shuster LLC, the index measures the performance of the top 100 companies ranked quarterly by market capitalization in the U.S. IPOX Composite Index.

The U.S. IPOX-100 Index utilizes a 10% capping on all constituents and includes the 100 largest, and typically most liquid, IPOs in the U.S. IPOX Composite Index.

"We believe this ETF provides financial advisors and their clients with a simple and convenient way to capitalize on U.S. IPOs," said Dan Waldron, vice president of ETF product development at First Trust Advisors, in a statement.

The First Trust IPOX-100 Fund is the Lisle, Illinois-based firm's third ETF offering, as well as the first IPO-based ETF on the market. 

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