Weak U.S. Technology, Emerging Markets pressure IPOX Indexes during shortened U.S. trading week. Continued uncertainty about global trade amid weakness in U.S. Technology and a larger then expected rise in U.S. wages reported Friday pressured the IPOX Indexes last week. In the U.S., for example, the diversified FAANG-free IPOX 100 U.S. – benchmark for the performance of U.S. New Listings – declined by -205 bps. to +8.68% YTD last week, lagging the S&P 500 (SPX) and Russell 2000 (RUT) (by between -101 and -94 bps.), while leading the Nasdaq 100 (NDX) (by +73 bps). Weakness extended across the IPOX Indexes Universe to Europe (IXTE, IPND), Developed Asia-Pacific (IPTA, IPJP) and China (CNI). Amongst IPOX 100 U.S. (IPXO) portfolio holdings, declines were broad-based across size and industries with companies including U.S. social networkers Twitter (TWTR US: -13.33%) and Snap (SNAP US: -8.81%), communications equipment maker Arista Networks (ANET US: -10.67%) and recently issued signature solutions provider DocuSign (DOCU US: -8.81%) or infrastructure software maker Zuora (ZUO US: -7.36%) lagging significantly. IPOX holdings recording significant upside on the week included specialty exposure such as online personal shopping platform operator Stitch Fix (SFIX US: +10.25%), applications software maker Coupa Software (COUP US: +8.79%) or IPOX Europe (IXTE) heavyweight Dutch payments processor Adyen (ADYEN NA: +6.75%).
Select IPOX-linked Investment Products Performance Update: The USD billion 1.2 IPOX 100 U.S. (IPXO)-linked First Trust U.S. Equity Opportunities ETF (FPX) fell to +8.99% YTD last week, while its international counterpart (FPXI) declined to -3.71% YTD. Amongst the range of actively managed IPOX-linked long-only products, the Catalyst IPOX® Allocation Fund (OIPAX) fell to +14.25% YTD.
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)||-2.60||28.59||2.02|
|IPOX International (IPXI)*||-3.07||37.80||-4.60|
|Exposure: United States (USD) (Price)|
|IPOX U.S. Composite (IPXC)*||-2.51||33.64||7.33|
|IPOX 100 U.S. (IPXO)*||-2.05||26.04||8.68|
|IPOX 30 U.S. (IPXT)||-1.95||26.63||4.63|
|Exposure: Europe/Nordic Region (EUR) (Price)|
|IPOX Europe 30 (IXTE)||-2.12||19.27||2.26|
|IPOX Nordic (IPND)||-1.28||17.91||0.55|
|Exposure: Asia-Pacific/China Region (USD) (Price)|
|IPOX Asia-Pacific (IPTA)||-2.77||23.30||-0.37|
|IPOX China (CNI)||-4.53||37.67||-6.17|
|IPOX Japan (IPJP)||-4.18||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].
IPO Deal-flow Review & Outlook: 5 firms set to go public in the U.S. as Chinese electric vehicle maker NIO (NIO US) sets to re-open U.S. IPO window. Only three (non-China A shares and non-local India) companies debuted last week across accessible global regions, with the average (median) equally-weighted firm declining by -5.99% (-8.16%) based on the difference between the final offering price and Friday’s close. While the first telecommunication company listed and the largest IPO ever in Ghana – USD million 696 Scancom/MTN Ghana (MTNGH GN: 0.00%) – traded flat after the launch, the two Japanese IPOs finished the week below final offer, suffering from generally weak market sentiment and a big spike in risk for Japanese micro/small-caps after the plunge in IPO incumbents such as real estate services providers Tateru (1435 JP: -68.74%) or Katitas (8919 JP: -19.72%). At least 8 firms are set to commence trading this week, with most focus on Shanghai-based NYSE-traded U.S. Chinese electric vehicle producer NIO (NIO US). The Goldman Sachs led, Tencent-backed EV startup – known as the Chinese Tesla (TSLA US: -12.74%) – seeks an initial valuation above USD billion 8 billion. Other China-linked deals of the week include Nasdaq-listed online pharmacy 111 Inc. (YI US), online entertainment content provider Nasdaq-listed Outoutia (QTT US), while Hong Kong listed deals include China Chunlai Education Group (1969 HK) and drug developer Hua Medicine (2552 HK).
|Select IPOs traded (week: 09/03/2018)||Domicile|
|Itochu Advance Logistics Investment Corp||Japan|
|Narumiya International Co Ltd||Japan|
|Select IPOs expected (week: 09/10/2018)||Domicile|
|China Chunlai Education Group||China|
|Navios Maritime Containers Inc||Greece|
Lime Brokerage LLC is not affiliated with these service providers. Data, information, and material (“content”) is provided for informational and educational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the users independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lime Brokerage LLC does not endorse, offer or recommend any of the services provided by any of the above service providers and any service used to execute any trading strategies are solely based on the independent analysis of the user.