IPO ETFs Could Benefit From SpaceX Excitement

One way to gain exposure is through the First Trust US Equity Opportunities ETF (NYSEARCA: FPX). With an expense ratio of 0.61%, the ETF tracks newly public companies during their early trading period—often when interest and volatility are at their peak. As of this writing, GE Vernova (NYSE: GEV) and SanDisk (NASDAQ: SNDK) are the fund’s top two holdings.

Instead of betting on a single IPO, FPX offers diversified exposure across multiple recent listings. Despite periodic disappointments in high-profile IPOs, the ETF has delivered strong long-term performance, climbing from roughly $11 in 2009 to recent highs near $189.

The key advantage is diversification. Rather than relying on any one IPO to succeed, investors benefit from overall enthusiasm and capital flows into the IPO market.

Renaissance IPO ETF Offers Broad IPO Exposure

Another option is the Renaissance IPO ETF (NYSEARCA: IPO). With a 0.6% expense ratio, the fund focuses on some of the largest and most liquid newly public U.S. companies. For example, as of this writing, CoreWeave (NASDAQ: CRWV) is the fund’s largest holding.

Its structure is designed to reduce single-stock risk while maintaining exposure to high-growth entrants. Since late 2023, the ETF has rallied from around $30 to about $49. Continued strength in the IPO market could push it higher, particularly if major offerings like SpaceX come to market with strong demand.

Private Market Funds Offer Pre-IPO Exposure

For investors looking beyond traditional ETFs, the Fundrise Innovation Fund (NYSE: VCX) offers exposure to private companies.

The fund has seen explosive recent gains, driven by demand for access to pre-IPO names. Its portfolio is heavily weighted toward artificial intelligence and data infrastructure, alongside investments in fintech, aerospace, and software.

Notably, it includes exposure to companies widely expected to go public in the future—giving investors a way to participate before IPO events occur.

Speculative SpaceX IPO Trades Carry Higher Risk

More speculative investors may look at Destiny Tech 100 (NYSE: DXYZ).

Shares have been fueled by excitement around its exposure to private “unicorn” companies, including SpaceX and other high-profile AI names. The stock has shown sharp momentum, jumping significantly in a short period.

Which SpaceX IPO Investments Carry the Most Upside?

If even a handful of these companies go public at strong valuations, the fund could see meaningful upside. However, volatility is likely to remain elevated given its concentrated and speculative nature.

Another reason investors are focusing on IPO-related funds is the improving backdrop for growth stocks. Falling interest rate expectations and stronger demand for artificial intelligence infrastructure have helped revive investor appetite for high-growth technology companies. If market conditions remain favorable, analysts expect more private firms to consider public offerings over the next 12 to 18 months, potentially creating additional momentum for IPO-focused funds.

Investors should also recognize that many SpaceX-related trades remain highly speculative. Because SpaceX is still privately held, funds with indirect exposure can experience sharp volatility based on headlines, valuation estimates, or shifts in investor sentiment. That makes diversification especially important for investors looking to participate in the IPO theme without taking excessive single-stock risk. While a SpaceX IPO could become one of the biggest market events in years, broader IPO market strength may ultimately create opportunities across multiple sectors beyond aerospace alone.

A SpaceX IPO is shaping up to be more than just a single market event—it’s acting as a catalyst for renewed interest across the IPO landscape. 

For investors, that creates multiple ways to participate. Diversified ETFs like FPX and IPO offer broad exposure, while funds like VCX and DXYZ provide more targeted—and higher-risk—opportunities. As anticipation builds, positioning ahead of the IPO wave may prove just as important as the IPO itself.