IPOX 100 U.S Index (IPXO) declines with Markets on spike in risk, continued sell-off in Markets abroad. Weak market sentiment amid mixed U.S. earnings, stable U.S. rates and more jitters in virtually all equity markets abroad pressed the IPOX Indexes last week, with the IPOX 100 U.S. (IPXO) – benchmark for the performing of New Listings in the U.S. – declining by -4.23%, -29 bps. more than when compared to the S&P 500 (SPX), benchmark for U.S. stocks. Declines were broad-based and extended across size and sectors with just 15/100 stocks ending the week in positive territory, with the average (median) recording a loss of -4.66% (-4.27%), lagging the applied market cap-weighted index. Notable downside was recorded by select regional banks (NTB US, GWB US), as well as fast growing consumer/technology firms (GRUB US, W US), while social networker Twitter (TWTR US: +12.24%) and specialty apparel store operator Burlington Stores (BURL US: +9.92%) rose against the trend. The IPOX® Long-only Indexes focusing on exposure abroad continued to suffer significant losses, generally in line with the performance of the market benchmarks.
IPOX 100® U.S. Investing with the ‘FPX’ ETF since 2006:
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Select IPOX-linked Investment Products Performance Update: The USD billion 1.1 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) declined to -2.65% YTD last week, while its international counterpart (FPXI) fell to -13.95% YTD. Amongst other IPOX-linked long-only products, the Catalyst IPOX® Allocation Fund (OIPAX) fell to +1.16% YTD.
|Select IPOX® Indexes Returns (%)||Last Week||2017||2018 YTD|
|IPOX® Long-Only: Global/International|
|IPOX® Global (IPGL50) (USD)||-4.14||28.59||-7.92|
|IPOX® International (IPXI)* (USD)||-3.72||37.80||-13.92|
|IPOX® Long-Only: United States|
|IPOX® 100 U.S. (IPXO)* (USD)||-4.23||26.04||-2.53|
|IPOX® Long-Only: Europe/Nordic|
|IPOX® Europe 30 (IXTE) (EUR)||-3.68||19.27||-9.51|
|IPOX® Nordic (IPND) (EUR)||-6.75||17.91||-12.32|
|IPOX® 100 Europe (IPOE)* (USD)||-4.42||41.77||-12.96|
|IPOX® Long-Only: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-5.29||23.30||-7.53|
|IPOX® China (CNI) (USD)||-2.91||37.67||-21.27|
|IPOX® Japan (IPJP) (JPY)||-7.11||N/A||N/A|
|IPOX® Market Neutral|
|IPOX® Market Neutral Asia-Pacific**||-1.76%||N/A||9.12|
|IPOX® Market Neutral Europe**||-4.86%||N/A||15.17|
|IPOX® Market Neutral U.S.**||1.13%||N/A||8.07|
|IPOX® Market Neutral Global**||-0.34%||N/A||9.36|
* 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: IPOZ8]. ** live since 03/18.
IPO Deal-flow Review & Outlook: Bearish market sentiment weighs on IPO market. Biotech companies lined up for November. 8 firms debuted last week across accessible global regions, with the average (median) equally-weighted firm adding just +3.63% (+1.42%) based on the difference between the final offering price and Friday’s close. Bearish market sentiment weighed on the IPO market: While Buffett’s Berkshire Hathaway and Alibaba’s Ant Financial-backed Brazilian payment processor StoneCo (STNE US: +29.54%) soared on the upsized, above range IPO, another highly expected launch – premium outdoor gear maker YETI (YETI US: -8.61%) – tumbled on its downsized, below-range offering. IPOs outside the U.S. were also affected with the first Chinese D-share household appliance manufacturer Frankfurt-listed Qingdao Haier (690D GR: -0.95%) and the largest metallurgical coal producer Coronado Global Resources (CRN AU: -16.25%) declining based on final offer. Amid the generally slowing global IPO pipeline, the healthcare sector is dominating the pipeline into the start of the month: Notable IPOs to watch this week include London-based commercial-stage gene therapy company Orchard Therapeutics (ORTX US), San Francisco startup silicon-based synthetic DNA developer Twist Bioscience (TWST US), and the largest biotech IPO in Hong Kong YTD – Chinese antibody drug biopharmaceutical company Innovent Biologics (1801 HK).
|Select IPOs traded (week: 10/22/2018)||Domicile|
|Coronado Global Resources||Australia|
|YETI Holdings||United States|
|Select IPOs expected (week: 10/29/2018)||Domicile|
|Axonics Modulation Technologies Inc||United States|
|Innovent Biologics Inc||China|
|Twist Bioscience Co||United States|
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