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Shannon Stapleton/Reuters
Echoes of the past often ricochet around markets to inform the present. So, for longtime market watchers, it’s difficult not to see parallels between frothier parts of the technology sector and the dot-com boom.
Current conditions are still some way off the mania of 1999, when the tech-heavy Nasdaq Composite Index powered ahead almost 90 per cent before the big bust in 2000.
One of 2020 s shining examples has been the Renaissance Capital IPO ETF (IPO), up over 111% year to date, Old Mission s Harry Whitton said in a Wednesday interview. The fund has grown to over half a billion dollars this year. It s really exciting, said Whitton, his firm s head of ETF sales trading. I think everybody s tied onto the whole record of IPOs happening this year in December, over 400 new issues launched in the IPO space.
Renaissance Capital expects heavy hitters such as SpaceX and Instacart to debut next year, and with that, the IPO ETF s gains to keep adding up.
Another fund family that s likely to build on its 2020 success is that of Ark Invest, which has brought in over $15 billion in assets year to date, Whitton said.