We could soon see an Anthropic IPO, giving investors another major artificial intelligence
company to watch. The company behind Claude has filed to go public and plans to list on the
Nasdaq under the ticker “ANT.” For investors eager to own a piece of the AI industry, that puts
a potential new opportunity on the horizon.

Of course, before investing, investors will need to weigh Anthropic growth potential against its
valuation, spending needs, and competition. And if enthusiasm sends shares soaring when
trading begins, buying into that excitement could prove expensive.


Fortunately, waiting to buy Anthropic shares directly isn’t the only approach worth considering.
Investors can also explore funds that own newly public companies or funds with exposure to
private businesses before they reach the stock market. These offer different ways to participate
in the broader IPO theme, depending on their holdings and investment rules.

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

With an expense ratio of 0.61%, the First Trust US Equity Opportunities ETF (NYSEARCA:
FPX) tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days
on the 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 a
lower 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 $169. 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.

Sincerely, 

Ian Cooper