After a slow start to the year, the IPO market is now heating up. Share of wearable fitness devices maker Fitbit surged almost 50% on the first day of trading, even though the company had raised the size and price range of the IPO, showing investors’ strong appetite for hot IPOs.

Even in the face of uncertainty relating to Greece and the interest rate hike by the Fed, investors believe that US stocks are the best place to put their money in. But they are looking for better growth opportunities as the broader market performance remains lackluster this year.

June is now on track to be the busiest month for IPOs since 1999. Many companies which were waiting on the sidelines earlier have started launching deals as the economy rebounds after stalling earlier this year. These signs point to a strong second-half of the year for the IPO market.

Investors hoping to profit from this surge should however remember that not all IPOs are successful. Instead of betting on individual stocks, investors could consider IPO ETFs that provide a low-risk and diversified exposure to newly minted companies. With their focus on the largest, most liquid and best performing IPOs, these ETFs have been beating the broader market.

To learn more, please watch the short video below: