IPOs: Another Round of Hope & Probably Tears

Right, so everyone’s getting terribly excited about IPOs again. 2025 was… quiet. A bit like a library, honestly. But 2026? Apparently, it’s going to be a blockbuster. Goldman Sachs says so. And when Goldman says something, you just know there’s a hefty fee attached to someone, somewhere, benefiting from it. They’re predicting a record year, fuelled by the usual suspects – titans of tech desperate to offload shares before everyone realises what they’re actually selling.

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Since 2013, it’s…underperformed the S&P 500. Let’s be honest. It’s not exactly setting the world on fire. But in a really hot IPO market, like 2020, it did do well. So there’s a chance it could shine again. But don’t expect miracles. It’s a bit like hoping your slightly wonky plant will suddenly bloom into a magnificent orchid. Possible, but unlikely.

The expense ratio is 0.6%. Reasonable, I guess, for a bit of diversification. But remember, over time, this ETF is likely to keep underperforming the S&P 500. The biggest companies will always end up in the S&P 500, naturally. So if you’re a long-term investor, you might be a bit disappointed. It’s a bit like buying a lottery ticket and expecting to win the jackpot. It’s fun to dream, but don’t bet the house on it.

Look, I’m just saying. Be careful. IPOs are exciting, but they’re also dangerous. It’s easy to get caught up in the hype, but remember, someone, somewhere, is always trying to take your money. And frankly, I’ve had enough of being someone’s target. So, if you’re going to play this game, do your research, be realistic, and for goodness sake, don’t invest anything you can’t afford to lose. And maybe, just maybe, you’ll come out the other side with a few pennies left in your pocket. Or at least, not completely ruined.

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2026-02-12 21:33