The IPOX® Week, September 03, 2018

  • FAANG-free IPOX 100 U.S. (IPXO) tops August U.S. Equity Indexes Performance Rankings with +6.96% gain.
  • Other IPOX Indexes gain strongly, too.
  • IPO Deal-flow Review & Outlook: Quiet as U.S. celebrates U.S. Labor Day. MTN Group’s Ghana unit Scancom (MTNGH GN) set to debut.

FAANG-free IPOX 100 U.S. (IPXO) tops August U.S. Equity Indexes Performance Rankings with +6.96% gain. The diversified FAANG-free IPOX 100 U.S. – benchmark for the performance of U.S. New Listings – extended its weekly consecutive winning streak to five to close out August with a monthly gain of +6.96%, outpacing the S&P 500 (SPX), Russell 2000 (RTY) or Nasdaq 100 (NDX) – benchmarks for U.S. stocks – by +394 bps., +277 bps., or +112 bps., respectively, last month. Heavy positioning in second generation payment processors including Jack Dorsey-led Square (SQ US: +13.38%), IPOX heavyweight Venmo owner Spin-off PayPal (PYPL US: +2.48%) or P/E IPO First Data (FDC US: +2.43%) helped to push the IPOX 100 U.S. (IPXO) to yet another weekly all-time high, despite big earning-linked losses in cloud based software maker Zuora (ZUO US: -17.38%) or retailer Michaels Co. (MIK US: -17.80%). In all, 65/100 IPOX 100 U.S. portfolio holdings rose last week, with the average (median) equally-weighted stock adding +0.91% (+0.99%), lagging the applied market cap weighted IPOX 100 U.S.

Other IPOX Indexes gain strongly, too. Surging relative performance in the IPOX 100 U.S. during August was matched by IPOX Indexes focusing on markets outside the U.S. last month. In Europe, e.g., the IPOX Europe (IXTE) added a large +374 bps. vs. the broad Stoxx 50 (SX5P), while the IPOX Japan (IPJP) recorded a relative jump of +292 bps. vs. the Japanese Market as measured by the TOPIX (TPX). Firms with notable gains in Europe and Asia towards the end of the month included U.K. soft drinks maker Fevertree (FEVR LN: +7.60%) – benefiting from big corporate action activity in the sector – Spin-off medical devices maker Siemens Healthineers (SHL GY: +3.35%) or Japan’s regenerative cell researcher Sanbio (4592 JP: +19.77%).

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

IPOX Price Returns (%) Last Week 2017 2018 YTD
Exposure: Global/International (xUS) (USD) (Price)
IPOX Global (IPGL50) 1.45 28.59 4.68
IPOX International (IPXI)* 1.06 37.80 -1.68
Exposure: United States (USD) (Price)
IPOX Composite U.S. (IPXC)* 1.02 33.64 10.10
IPOX 100 U.S. (IPXO)* 1.12 26.04 10.96
IPOX 30 U.S. (IPXT) 1.41 26.63 6.72
Exposure: Europe/Nordic Region (EUR) (Price)
IPOX Europe 30 (IXTE) 0.22 19.27 4.47
IPOX Nordic (IPND) 0.50 17.91 1.89
Exposure: Asia-Pacific/China Region (USD) (Price)
IPOX Asia-Pacific (IPTA) 0.35 23.30 2.28
IPOX China (CNI) 2.01 37.67 -1.50
IPOX Japan (IPJP) 1.86 N/A N/A

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

Select IPOX-linked Investment Products Performance Update: Amid fresh all-time highs in IPOX-linked AUM, the USD billion 1.3 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) extended its YTD gain to +11.35% last week, while the a good week in China-linked exposure helped its international counterpart (FPXI), with the fund further recovering to -0.25% 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 outperformed anew, with the Catalyst IPOX® Allocation Fund (OIPAX) extending its YTD gain to +15.21%, e.g., benefiting from big gains in very recently launched IPOs, including cannabis based medicines maker Tilray (TLRY US: +48.65%).

IPO Deal-flow Review & Outlook: Quiet as U.S. celebrates U.S. Labor Day. Only one (non-China A shares and non-local India) company – downsized Colorado cannabis maker Toronto-traded Charlotte’s Web (CWEB CN: +48.71%) – debuted last week, with the IPO benefiting from the big gains in the already listed incumbents. While no U.S. IPO is schedule for Labor Day week, we note the IPO of MTN Group’s Ghana unit Scancom (MTNGH GN), set to become the largest IPO on the Ghana Stock Exchange. In the U.S., firms added to the deal pipeline include San Mateo-based online polling company SurveyMonkey (SVMK US). We also learned that rideshare company Lyft is aiming for a 2019 IPO, ahead of competitor Uber.

Select IPOs traded (week: 08/27/2018) Domicile
Charlotte’s Web Holdings United States
Select IPOs expected (week: 08/27/2018) Domicile
Itochu Advance Logistics Investment Corp Japan
Narumiya International Co Ltd Japan
Scancom PLC Ghana

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