The IPOX® Week, August 27, 2018

  • IPOX 100 U.S. (IPXO) beats Markets during record week for U.S. stocks. Specialty stocks drive big gains.
  • Other IPOX Developed Markets exposure surges.
  • IPO Deal-flow Review & Outlook: No U.S. IPOs expected as global IPO markets remain quiet. More high profile deals line up for September stock market debut.

IPOX 100 U.S.(IPXO) beats Markets during record week for U.S. stocks. Specialty stocks drive big gains. The diversified FAANG-free IPOX 100 U.S. – benchmark for the performance of U.S. New Listings – extended its weekly consecutive winning streak to four to close out the week at a fresh historic record, as strong earnings and (perceived) corporate action activity propelled select specialty exposure to big gains and the U.S. Dollar weakened. On the week, the IPOX 100 U.S. portfolio surged +2.49% to +9.73% YTD, outpacing the S&P 500 (SPX) – benchmark for U.S. stocks – by a large +1.63 bps. on the week. Exposure with most upside included enterprise storage solutions provider Pure Storage (PSTG US: +20.18%), collaborative software maker Smart Sheet (SMAR US: +16.74%) or shopping platform operator Stich Fix (SFIX US:  +15.37%), while IPOX heavyweight cloud network firm Arista Networks (ANET US: +14.70%) surged after S&P Dow Jones announced that the firm would be added to the S&P 500. Bandwidth Infrastructure provider Zayo (ZAYO US: -6.18%) ranked at the bottom of the weekly IPOX 100 U.S. performance rankings.

Other IPOX Developed Markets exposure surges. Strong gains and surging relative performance in the U.S. were matched by the IPOX Europe (IXTE), IPOX Asia-Pacific (IPTA) and IPOX Japan (IPJP) with notable gains recorded by IPOX Holdings including European payment processor Adyen (ADYEN NA: +13.85%), hard-hit London-traded security software provider Sophos (SOPH LN: +9.36%), Australian investment manager Netwealth Group (NWL AU: +19.90%), Canadian high-end anorak maker Canada Goose (GOOS US: +11.11%) or Tokyo-traded real estate broker House Do Co. (3457 JP: +25.01%). We note yet another all-time high in diversified online services provider, owner Tokyo-traded IPOX heavyweight Recruit (6098 JP: +4.73%).

IPOX® 100 U.S. – Investing with the “FPX” ETF since 2006

Select IPOX Indexes Returns (%) Last Week 2017 2018 YTD
Exposure: Global/International (xUS) (USD) (Price)
IPOX Global (IPGL50) 3.12 28.59 3.17
IPOX International (IPXI)* 2.51 37.80 -2.74
Exposure: United States (USD) (Price)
IPOX U.S. Composite (IPXC)* 1.83 33.64 8.98
IPOX 100 U.S. (IPXO)* 2.49 26.04 9.73
IPOX 30 U.S. (IPXT) 1.53 26.63 5.23
Exposure: Europe/Nordic Region (EUR) (Price)
IPOX Europe 30 (IXTE) 2.15 19.27 4.24
IPOX Nordic (IPND) -0.20 17.91 1.37
Exposure: Asia-Pacific/China Region (USD) (Price)
IPOX Asia-Pacific (IPTA) 2.32 23.30 1.94
IPOX China (CNI) 4.56 37.67 -3.44
IPOX Japan (IPJP) 1.80 N/A N/A

* Basis for ETPs: FPX US, FPX LN, FPXU FP, FPXI US, TCIP110 IT and CME traded e-mini IPOX® 100 U.S. Index Futures [Symbol: IPOU8].

Select IPOX-linked Investment Products Performance Update:  IPOX-linked AUM reached an all-time high last week with the USD billion 1.23 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) extending its YTD gain to +10.10%.  The recovery in China-linked exposure helped its international counterpart (FPXI), with the fund recovering to -1.25% YTD. “FPX” and “FPXI” provide investors with a turnkey solution to access the “going public” effect in global IPOs and Spin-offs, often a pure proxy for innovation and economic growth. Actively managed IPOX-linked funds also rose strongly, with the Catalyst IPOX® Allocation Fund (OIPAX) extending its YTD gain to +13.39%, e.g.

IPO Deal-flow Review & Outlook: No U.S. IPOs expected, global IPO markets remain quiet. High profile deals line up for September stock market debut. Only one (non-China A shares and non-local India) company – Seoul-based biotech company Bio Solution (086820 KS: -8.97%) – debuted last week across accessible global regions, declining significantly based on the difference between the final offering price and Friday’s close and highlighting the current jitters around unseasoned Asia-traded biotechs. While the pipeline for deals across the global regions remains quiet through month-end – with only a small-cap Australian clean energy storage firm 1414 Degrees (14D AU) set to launch – new filings suggest a busy Q4. High profile IPOs added to the deal pipeline include London-based online luxury fashion retail platform operator Farfetch (FTCH US) and San Francisco-based event-planning and ticketing company Eventbrite (EB US). We also learned that Saudi Arabia has halted its plan for the biggest IPO in history – the state-owned oil and gas company Aramco.

Select IPOs traded (week: 08/20/2018) Domicile
Biosolution Co Ltd Korea
Select IPOs expected (week: 08/27/2018) Domicile
1414 Degrees Ltd Australia

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