Summary
- Renaissance IPO ETF (IPO) is rated a buy, anticipating a surge in major IPOs through 2026 to fuel renewed investor interest.
- IPO’s portfolio is heavily growth-oriented, with 94% SMID-cap exposure and a 42% weighting in Information Technology.
- Despite a high 26.9x P…
Summary
- Renaissance IPO ETF (IPO) is rated a buy, anticipating a surge in major IPOs through 2026 to fuel renewed investor interest.
- IPO’s portfolio is heavily growth-oriented, with 94% SMID-cap exposure and a 42% weighting in Information Technology.
- Despite a high 26.9x P/E, IPO’s long-term earnings growth near 32% yields a compelling PEG ratio below 2.
- Technicals remain weak, with resistance at $48–$49 and support in the low $40s; a breakout above $49 and RSI strength would be bullish.
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OpenAI, SpaceX, and Anthropic are the triumvirate of potential 2026 IPOs. The go-public window is open, as evidenced by a solid 2025 of new issues, notwithstanding the October-November government shutdown. Michael Cembalest of J.P. Morgan Asset Management notes that IPO volume
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