The IPOX® Week, January 20, 2020

  • IPOX Indexes extend gains during 2nd full week of 2020 trading.
  • China-linked exposure drives continued positive momentum in the IPOX International ETF (ETF: FPXI). IPOX heavyweight phone maker Xiaomi (1810 HK: +15.94%) surges.
  • IPO Deal-flow Review & Outlook: Little deal flow seen during shortened U.S. trading week; Chinese Lunar New Year.

IPOX Indexes extend gains during 2nd full week of 2020 trading. The IPOX Indexes continued to zoom higher during U.S. options expiration week on smooth global trading as U.S. yields held steady, risk declined (VIX: -3.66%), with markets little affected by U.S. presidential impeachment procedures. Amid fresh all-time weekly closing Highs in most IPOX Indexes, notable remained the big strength in China-linked exposure, which propelled the IPOX International (ETF: FPXI) to another strong week, adding +2.64% to +4.95% YTD, now +392 bps. YTD ahead of the International Market. Stocks in focus here included large-cap IPOX heavyweight

IPOX® International ETF (FPXI) vs. Super-Cheap Benchmarks since 01/2017:

smartphone maker Xiaomi (1810 HK: +15.94%) which surged after news about the separation of its POCO brand and possible inclusion in Hong Kong’s Hang Seng Index (HSI) triggered a big short-covering rally. Big gains also extended to China-linked mid-caps, including IPOX International (ETF: FPXI) portfolio holding biotech Zai Lab (ZLAB US: +28.17%) and Gsx Techedu (GSX US: +22.62%), a provider of educational software. In the U.S., the FANG-free, diversified, large-cap centric IPOX 100 U.S. (ETF: FPX) added +2.19% to +3.83% YTD, +22 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks, but somewhat lagging U.S. Small-caps and U.S. technology stocks. The negative impact of lagging streaming music provider Spotify (SPOT US: -4.93%), car vending machine operator Carvana (CVNA US: -4.12%) and computer hardware makers Spin-offs Hewlett Packard Enterprises (HPE US: -2.39%) and Chicago-based CDW (CDW US: -3.87%) was more than offset by big gains in small-cap high growth stocks including software makers Appian (APPN US: +19.73%), P/E-backed Blackline (BL US: +12.69%) and Crowdstrike Holdings (CRWD US: +10.93%). We also note another good week for social networker Snap (SNAP US: +9.76%) which rose back above its final IPO price after investment bank UBS (UBS US: +1.16%) upgraded the stock.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 2.30 27.93 5.29
IPOX® International (IPXI)* (USD) 2.64 31.37 4.95
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) 2.19 29.60 3.83
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 1.66 34.55 3.93
IPOX® Nordic (IPND) 1.92 38.52 3.91
IPOX® 100 Europe (IPOE)* (USD) 1.22 30.97 1.70
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 1.33 4.41 1.80
IPOX® China (CNI) (USD) 4.16 26.31 8.51
IPOX® Japan (IPJP)** (JPY) 0.01 7.91 0.90

* 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 (IPOH0). Source: Bloomberg L.P.

IPOX ETFs 2020 YTD Returns: IPOX 100 U.S. (ETF: FPX): +3.97%; IPOX International (ETF: FPXI): +5.19%; IPOX 100 Europe (ETF: FPXE): +1.74%.

IPO Deal-flow Review & Outlook: Little deal flow seen during shortened U.S. trading week; Chinese Lunar New Year. At least 13 IPOs launched across the global regions last week**, with the average (median) equally-weighted firm adding +2.19% (+0.00%) based on the difference between the final offering price and Friday’s close. Amid strong investor appetite for the stock, Chinese sauerkraut fish restaurant chain Jiumaojiu (9922 HK: +55.76%) spiked in its H.K. debut, while IPOX International (ETF: FPXI) heavyweight Xiaomi (1810 HK: +15.94%)-backed podcast app Lizhi (LIZI US: +5.73%) finished its 1st week of U.S. trading just slightly higher and Chinese co-living platform operator Phoenix Tree (DNK US: 0.00%) closed flat, after downsizing and cutting its range. Other IPO news include: 1) Slew of PE/VC-backed companies filing for IPOs last week include drug discovery company Schrödinger, specialty chemicals maker Atotech, grocery giant Albertsons, women-owned beverage brewer SHE Beverage and fitness franchise Mark Wahlberg-backed F45 Training; 2) valued at $200 billion, Alibaba’s fintech arm Ant Financial (known as Alipay) reportedly revives H.K. IPO plan.
**Terms applies

Track Priced & Upcoming IPOs on

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