When an exchange traded fund chooses to invest in stocks or index recently launched, this is referred to as IPO(initial public offering) etf. This type of indexes is passively managed and this is done by fund manager. They invest in companies that have just concluded their public offering. Investors put their money into IPOs of companies from different sectors and industries after gaining confidence of performance during their launch to the public market.
Investors want to benefit from new products or services to be tackled but still no success is guaranteed after the IPO. Fees can make investors' money go down just after the initial public offering.