5 ETFs Popular on Robinhood

4. Renaissance IPO ETF (NYSE:IPO)

Renaissance IPO ETF (NYSE:IPO) is an exchange traded fund that invests at least 80% of net assets in an index that tracks companies that recently completed an initial public offering (IPO). The fund only invests in firms trading on exchanges in the United States.

Renaissance IPO ETF (NYSE:IPO) has invested heavily in Coinbase Global, Inc. (NASDAQ:COIN), a fintech firm catering to the crypto-economy that went public last year. Among the hedge funds being tracked by Insider Monkey, New York-based firm ARK Investment Management is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN) with 5.4 million shares worth more than $1.3 billion. 

In its Q4 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:

“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase Global, Inc. (NASDAQ:COIN) is a prime example.”