Chart of Day: Top Ways to Trade a Potential Anthropic IPO

We could soon see an Anthropic initial public offering (IPO).

In fact, the AI company is expected to begin promoting its IPO in November 2026, after delaying plans to go public in October. Heading into the potentially red-hot IPO, some investors think it could be valued at $2 trillion, which would make it one of the biggest stock market debuts ever.

But be cautious.

Instead, what you may want to do is wait until the first-day excitement settles. Highly anticipated stock offerings can fuel a fear of missing out, or FOMO, pushing the opening share price well above the IPO price. If you buy into that early rush, you could end up paying a hefty premium simply because enthusiasm is running high. Instead, you want to consider an exchange traded fund (ETF) that has a history of running with new, red-hot IPOs.

Look at the First Trust US Equity Opportunities ETF (FPX), for example.

With an expense ratio of 0.61%, the FPX tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at lesser cost.

Even with its share of high-profile IPO disappointments, FPX has delivered strong long-term gains, climbing from around $11 in 2009 to recent highs near $181. The key advantage is simple: whether individual IPOs succeed or fail, the overall excitement and capital inflows into the IPO market tend to support the ETF over time.

With the FPX, it doesn’t matter if the stock is hot or a dud, the excitement surrounding IPOs continues to send the FPX to new highs.

Or, you can use the Renaissance IPO ETF (IPO)

With an expense ratio of 0.6%, the ETF provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.

Since November 2023, the ETF rallied from a low of about $30 to its current price of $54. From here, we’d eventually like to see the ETF rally back to $60 a share.

About Author

Ian Cooper

Ian Cooper has helped individual investors navigate financial markets, identify opportunities, and manage risk since 1999. He has taught thousands of investors to interpret market-moving news and investor psychology through a disciplined combination of technical and fundamental analysis.

His major market calls included calling the 2008 financial crisis months before it began, identifying risks in subprime and Alt-A mortgages, and warning of trouble at Lehman Brothers, Bear Stearns, and New Century Financial. He also forecast the Dow Jones Industrial Average’s decline toward 6,500 and its subsequent recovery, and projected gold’s rise above $1,500 an ounce when it traded below $600.

Today, Cooper draws on decades of experience to help investors make informed decisions and pursue long-term wealth creation. His approach emphasizes rigorous research, disciplined risk management, and an understanding of how fundamentals, price trends, and market sentiment influence investment opportunities.

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