The IPOX® Week, February 11, 2019

  • FANG-free diversified IPOX 100 U.S. (ETF: FPX) extends consecutive weekly winning streak to seven, closes week above key technical level.
  • Shunned by the major indexes, Snap (SNAP US) finally delivers in IPOX, software makers surge to fresh record.
  • IPO Deal-flow Review & Outlook: U.S. IPO window open as deals line up; Slack direct listing, Postmates IPO filed.

FANG-free diversified IPOX 100 U.S. (ETF: FPX) extends consecutive weekly winning streak to seven, closes week above key technical level. Strong earnings amongst key portfolio holdings amid big fears about global growth and subsequently lower U.S. yields pushed the FANG-free IPOX 100 U.S. (ETF: FPX) to a seventh consecutive weekly gain, adding +0.78% to +13.23% YTD, de-coupling from the U.S. benchmarks anew and extending the YTD gains vs. the S&P 500 (SPX) to a large +521 bps. Ahead of U.S. options expiration, just 36% of portfolio holdings fell, with the average (median) equally-weighted stock adding +1.57% (+1.47%) on the week. With the IPOX 100 U.S. (ETF: FPX) closing the week above the key 200-day moving average for the first time since the week of Oct. 8th 2018, gains continued to be driven by small/mid-sized innovative growth firms after earnings: Shunned by the major indexes due to its voting rights structure, e.g., social networker 03/2017 IPO Snap (SNAP US: +31.69%) finally delivered in IPOX, while specialty stocks including application software makers Paycom (PAYC US: +16.65%), Smartsheet (SMAR US: +14.67%) and Zendesk (ZEN US: +10.64%), as well as consumer staple Performance Food Group (PFGC US: +12.39%) finished the week at a fresh all-time high, respectively. Jeep maker Fiat Chrysler (FCAU US: -12.95%), optical products maker Lumentum (LITE US: -15.22%) and auto lubricants maker Valvoline (VVV US: -18.85%) ranked at the bottom of the weekly performance rankings. Amid the shortened Asian trading week, the IPOX Indexes focusing on exposure in markets outside the U.S. traded mixed last week.

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

IPOX-linked Products Performance Updates: The IPOX 100 U.S. (IPXO)-linked, 5-star (10 years) USD billion 1.02 First Trust IPOX® U.S. Equity Opportunities ETF (FPX) added +0.79% to +13.33% YTD, while the IPOX International (IPXI)-linked “FPXI” fell to +9.04% YTD and the IPOX Europe (IPOE)-linked “FPXE” ETFs rose to +8.75% YTD, respectively. Amongst long-only actively managed IPOX-linked products, the Catalyst IPOX® Allocation Fund (OIPAX) finished the week +11.45% YTD higher.

IPOX® Indexes Price Returns (%) (RT) Last Weerk 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -0.45 -11.37 9.95
IPOX® International (IPXI)* (USD) -1.43 -13.41 7.30
IPOX® Indexes: United States
IPOX® Comp. U.S. (IPXC)* 0.35 -7.59 11.22
IPOX® 100 U.S. (IPXO)* 0.78 -8.80 13.23
IPOX® 30 U.S. (IPXT) 0.25 -10.28 11.12
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -0.93 -13.46 7.38
IPOX® Nordic (IPND) 0.31 -15.45 6.95
IPOX® 100 Europe (IPOE)* (USD) -1.16 -16.60 6.63
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.79 -3.21 1.80
IPOX® China (CNI) (USD) -0.31 -22.83 8.94
IPOX® Japan (IPJP)** (JPY) -1.95 -13.70 1.87

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOH9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: U.S. IPO window open as deals line up; Slack direct listing, Postmates IPO filed. Four firms debuted last week across accessible global regions, with the average (median) equally-weighted firm dropping -1.45% (-1.85%) based on the difference between the final offering price and Friday’s close. U.S. firms in focus last week included upsized U.S. biotech San Diego based Gossamer Bio (GOSS US: +12.13%), as well as other early-stage biopharma companies such as AbbVie (ABBV US: +0.27%)-backed San Francisco-based Alzheimer’s and dementia focused USD billion 1.4 Alector (ALEC US: -14.21%). Abroad, after pricing at the bottom of the range, tech-giants Tencent (700 HK: -0.69%) and Meituan (3690 HK: +7.62%)-backed movie ticketing app Maoyan Entertainment (1896 HK: -0.14%) had a lackluster debut just before the Chinese lunar new year. The firm also recently added cinema operator IMAX China (1970 HK: +4.50%) and phone maker Xiaomi (1810 HK: -1.72%) as cornerstone investors. We note last week’s Spotify (SPOT US: -1.81%)-style direct listing filing of workplace message platform Slack, as well as the IPO filing of food delivery app Postmates. With the U.S. IPO window being wide open, companies lined up to debut this week include private express train operator Virgin Train USA (VTUS US), which is currently valued at an astonishing $3.2 billion, as well as and a new wave of cash-hungry small-cap biotechs.

Select IPOs traded (week: 02/04/2019) Domicile
 Maoyan Entertainment  China
 Alector Inc  United States
Gossamer Bio Inc United States
Select IPOs expected (week: 02/11/2019) Domicile
 Avedro Inc  United States
Chunbo Co Ltd Korea
Cibus Global Ltd United States
TCR2 Therapeutics Inc United States
Virgin Trains USA Inc United States

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