Do ETF NFOs deliver IPO-like listing gains?

Do ETF NFOs result in listing gains similar to stocks? - Anonymous Yes, they do. But they are a far cry from the epic IPO (initial public offering) listing gains we have grown accustomed to in the last couple of years. Say hello to Paras Defence , with 185 per cent gains on the first day of the stock market, and Tata Technologies , at 162.85 per cent. (But that's not to say we endorse IPOs. More on that later.) The reason ETF NFOs (new launches of exchange-traded funds) are a lot less spicy is because they are structurally different from company stocks. Being passive funds, ETFs only intend to replicate the performance of a particular index. Their units are created likewise and sold during an NFO. As a

This article was originally published on June 25, 2024.