One of the easiest ways to identify hot stock sectors is by following the release of new ETFs and ETNs. Last week, the Internet stock IPO market got its first two ETNs. The ETRACS Internet IPO ETN (NYSE:EIPO) tracks a UBS index of 20 tech-related stocks that have debuted on the NASDAQ or NYSE within the past three years. That includes headliners like professional social networking company Linkedin Corporation (NYSE:LNKD) and Russian search giant Yandex (NASDAQ:YNDX).
A sister ETN – the Monthly 2X Leveraged ETRACS Internet IPO ETN (NYSE:EIPL) – ratchets up the stakes even more by seeking to return twice the performance of UBS’ new tech index.
The funds give investors exposure to new tech stocks without forcing them to put all their eggs in a single company. That could prove appealing as many of the hottest tech IPOs have come from companies based outside of the U.S. Unstable political environments and intense competition in China and Russia, for instance, makes sinking cash into a single company risky.
Here’s a look at the Top 10 stocks in the UBS Internet IPO Index. The index, which the new tech IPO ETNs will attempt to track, reads like a who’s who of the hottest tech IPOs over the past three years:
| No. | Company | Ticker | Weighting |
| 1) | LinkedIn Corp. | LNKD | 10% |
| 2) | HomeAway Inc. | AWAY | 10% |
| 3) | Yandex | YNDX | 10% |
| 4) | Rackspace Hosting | RAX | 10% |
| 5) | Pandora Media | P | 9.57% |
| 6) | RenRen | RENN | 9.2% |
| 7) | OpenTable | OPEN | 6.48% |
| 8) | Ancestry.com | ACOM | 5.97% |
| 9) | SouFun Holdings | SFUN | 3.44% |
| 10) | Demand Media | DMD | 3.39% |
