The IPOX® Week, January 14, 2019

  • IPOX 100 U.S. (IPXO) records best ever start to New Year as IPOX Indexes jump, most outperform.
  • Following Nasdaq 100 (QQQ) ejection, “FPX” ETF now viable option to track IPO M&A Takeda (TAK US) as Shire/Baxalta deal consummates.
  • IPOX Factoid of the Week / Amid U.S. government shutdown & seasonal weakness, Hong Kong remains only active global IPO market / Slack set to list directly.

IPOX 100 U.S. (IPXO) records best ever start to New Year as IPOX Indexes jump, most outperform. The IPOX Indexes continued their huge bounce since December expiration with the FANG-free, diversified IPOX 100 U.S. (IPXO) extending last week’s gains to record the best ever start to a New Year, adding a massive +5.14% last week to +6.49% YTD, +260 bps. ahead of the S&P 500 (SPX: +2.54%) benchmark for U.S. stocks. Just 8% of the large-cap centric IPOX 100 U.S. (IPXO) fell. Amid a change in U.S. market leadership away from the S&P 500 (SPX) and Nasdaq 100 (NDX: +2.78%) ahead of U.S. option expiration, select IPOX-held small-caps contributed to the strong showing, including auto vending machine operator Carvana (CVNA US: +19.56%), biotech Guardant Health (GH US: +18.62%) or software maker Anaplan (PLAN US: +18.46%), while Amazon’s (AMZN US: +5.34%) plan to enter its business pressured database software maker MongoDB (MDB US: -8.87%). Big (relative) gains extended to Europe (IPOE, IPND) and (Developed) Asia-Pacific (IPTA), while phone maker Xiaomi (1810 HK: -13.55%) fell after the expiration of lock-ups, pressuring the IPOX China (CNI: +1.70%), e.g.

Following Nasdaq 100 (QQQ) ejection, “FPX” ETF now viable option to track IPO M&A Takeda (TAK US) as Shire/Baxalta deal consummates. Amid massive corporate (IPO) M&A in the sector (e.g. LOXO US: +66.34%), we note big returns in IPOX heavyweight drug maker Takeda (TAK US: +12.54%) following its Dec. 21st, 2017 ejection from the Nasdaq 100 (ETF: QQQ) and consummation of the IPOX-held Shire/Baxalta deal, leaving the “FPX” ETF as a viable option to track the highly liquid stock.

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

Last week’s IPOX-linked ETF performance: The IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) rose a massive +5.19% to +6.49% YTD, while the IPOX International (IPXI)-linked “FPXI” and IPOX Europe (IPOE)-linked “FPXE” ETF also had a strong week, gaining to an impressive +4.65% YTD and +5.79% YTD respectively.

IPOX® Indexes Price Returns (%) (RT) Last Weerk 2018 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 4.25 -11.37 4.92
IPOX® International (IPXI)* (USD) 3.63 -13.41 4.19
IPOX® Indexes: United States
IPOX® Comp. U.S. (IPXC)* 4.54 -7.59 6.45
IPOX® 100 U.S. (IPXO)* 5.14 -8.80 6.49
IPOX® 30 U.S. (IPXT) 5.11 -10.28 6.21
IPOX® Indexes: Europe/Nordic
IPOX® Nordic (IPND) (EUR) 3.32 -15.45 5.26
IPOX® 100 Europe (IPOE)* (USD) 3.39 -16.60 4.47
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 4.76 -3.21 5.52
IPOX® China (CNI) (USD) 3.96 -22.83 1.70
IPOX® Japan (IPJP)** (JPY) 4.29 -13.70 4.27

* 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 (IPOZ8). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPOX Factoid of the Week: Since 1989 (29 years), the IPOX 100 U.S. (IPXO) closed a year with the same sign as its YTD return by the close of the 8th trading day in 55% of years. In up years (75%), the average (median) IPOX 100 U.S. (IPXO) return was +24.97% (+22.87%) based on year-end returns or +21.43% (+19.36%) from the close of the 8th trading day through year-end, respectively. In down years (25%), the average (median) IPOX 100 U.S. (IPXO) return was -26.80% (-23.93%) based on year-end returns or -23.46% (-20.53%) from the close of the 8th trading day through year-end, respectively.

Amid seasonal weakness & the U.S. government shutdown, Hong Kong remains only active global IPO market / Slack set to list directly. H.K. retailer Best Mart 360˚ (2360 HK: +17.00%) was the only firm debuting last week, adding +17.00% based on the difference between Friday’s close and final offer. Amid seasonal weakness & the U.S. government shutdown, no U.S. deals are scheduled, while H.K. remains with infrastructure construction firm, state-owned Chengdu Expressway (1785 HK) and Tencent-backed commerce and marketing services provider Weimob (2013 HK) set to IPO. We also note Friday’s news about a direct Spotify (SPOT US: -19.62% since direct listing)-type direct listing of U.S. messaging platform operator Slack Technologies Inc.

Select IPOs expected (week: 01/14/2019) Domicile
Chengdu Expressway Co., Ltd China
Weimob Inc China

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