SPAC IPO ETF in the pipeline

SPAC IPO ETF in the pipeline

As special purpose acquisition corporations rush to go public, ETF Series Solutions files for the potential launch of a passively managed exchange-traded fund that will include securities of SPACs that have recently gone public and IPO stocks derived from SPACs.

SPACs, or so-called blank-check companies, raise money with the sole purpose of acquiring a business, usually within a two-year timeline from its IPO.

The Defiance NextGen SPAC IPO ETF (NYSEARCA:SPAK) seeks to track the total return performance of the Indexx SPAC & NextGen IPO Index.

To be eligible for inclusion in the index, a security must be U.S.-listed, have a minimum total market capitalization of $250M, have a free float of at least 10%, have a trading price of less than $10,000, and meet minimum liquidity thresholds.

ETF Series Solutions also files for another passive ETF, the Defiance Indxx Junior Semiconductor ETF (NYSEARCA:SMHJ), which will include U.S.-listed common stock or depositary receipts of small capitalization companies in the electronic production equipment and semiconductors industries.

Seeks to track the Indxx U.S. Junior Semiconductor Index.

Expected expense ratios aren’t included in the filing.

Previously: Lordstown Motors to go public in SPAC deal (Aug. 3)