First Trust introduced the first exchange-traded fund to track U.S. initial public offerings last week, but investors should think carefully about when they choose to buy in, according to MarketWatch columnist Mark Hulbert. 

The fund, called First Trust IPOX-100 Index fund and launched on the American Stock Exchange last Thursday, picks 100 stocks from the IPOX U.S. Composite Index, which includes IPOs in their first 1,000 days of trading. The Lisle, Ill.-based company's ETF only picks stocks after they have traded for seven business days, in order to avoid the immediate swings new stocks often experience, according to Dan Waldron, First Trust vice president for ETF product development.

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