Official IPOX 2019 Returns

  • All IPOX Indexes reverse 2018 losses to record big gains in 2019; most outperform benchmarks.
  • IPO M&A major theme in 2019; set to continue in 2020.
  • IPOX ETFs in focus for 2020: FPX, FPXI and FPXE.

All IPOX Indexes reverse 2018 losses to record big gains in 2019; most outperform benchmarks. Amid a depressed level of equity risk (VIX: -45.79% Y/Y 2019) and falling (global) yields, the IPOX Indexes were one of the great beneficiaries of last years buoyed mood in world equities. In the U.S., e.g., the F(A)ANG-free, diversified IPOX 100 U.S. (ETF: FPX) rose +29.60% in 2019 to perform better than when to compared to most other broad-based U.S. stock market indexes, including the S&P 500 (SPX: +28.88%), Russell 2000 (RTY: +23.72%) and S&P Mid-Cap (MID: +24.05%). Amid its unique factor footprint (see https://bit.ly/35f3Ive), unadjusted annualized returns for the IPOX 100 U.S. continued to leave the associated ETF (FPX) well ahead of the Market gauges:

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

Here, big gains in technology and consumer-related exposure led some of the strong showing in 2019, including social networker Snap (SNAP US: +196.37%), car vending machine operator Carvana (CVNA US: +181.41%) and application software maker Coupa Software (COUP US: +132.66%). Amid surging “IPO M&A” of cash-rich global large- and mega-caps across industries driven by low interest rates and the attractiveness of some IPO targets, respective firms tracked in the IPOX 100 U.S. (ETF: FPX) also recorded some notable outperformance, including chicken producer Tyson Foods (TSN US: +70.49%), industrial equipment rental company United Rentals (URI US: +62.65%) or life science equipment maker Thermo Fisher Scientific (TMO US: +50.72%). This helped to more than offset the sharp losses in select seasoned core holdings exiting the IPOX 100 U.S. (ETF: FPX) during last year, including consumer staple, IL-based ketchup maker Kraft Heinz (KHC US: -21.19%). Absolute and relative strength extended to the IPOX Indexes tracking non-U.S. domiciled exposure last year as well. Supported by arguably lower initial valuations of respective IPOs when compared to their U.S. counterpart, the IPOX International (ETF: FPXI), e.g., rose +31.37% in 2019, well ahead of the MSCI World (ex. United States) (MXWOU: +18.97%), gauge for the performance of stocks with a non-U.S. domicile. Companies active across size and specialty, ESG-friendly industries drove some of the great (and sequentially improving) showing of the diversified IPOX International (ETF: FPXI) Portfolio, including German (iPhone) battery maker Varta (VAR1 GY: +387.94%), Canadian ecommerce firm Shopify (SHOP US: +187.17%), Hong Kong-traded “hot-pot” restaurant supplier Yihai International (1579 HK: +138.77%), Chinese telecom carrier GDS Holdings (GDS US: +123.39%), Italian race car maker Ferrari (RACE US: +70.43%), Brazils managed health care services provider Notredame (GNDI3 BS: +134.70%) and Denmark’s wind farm operator Orsted A/S (ORSTED DC: +58.14%).

Select IPOX® Indexes Price Returns (%) 2017 2018 2019
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 28.59 -11.37 27.93
IPOX® International (IPXI)* (USD) 37.80 -13.41 31.37
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) 26.04 -8.80 29.60
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 19.27 -13.46 34.55
IPOX® Nordic (IPND) 17.91 -15.45 38.52
IPOX® 100 Europe (IPOE)* (USD) 41.77 -16.60 30.97
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 23.30 -3.21 4.41
IPOX® China (CNI) (USD) 37.67 -22.83 26.31
IPOX® Japan (IPJP)** (JPY) n/a -13.70 7.91

* 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.

Official IPOX ETFs 2019 Returns: IPOX 100 U.S. (ETF: FPX): +30.37%, IPOX International (ETF: FPXI): +33.70%, IPOX 100 Europe (ETF: FPXE): +34.57%.

IPOX® International Investing with the “FPXI” ETF since launch:

While the Developed Asia-Pacific focused IPOX Portfolios (IPTA, IPJP) somewhat lagged in 2019, a significant absolute and relative performance jump was also recorded by the uniquely European growth-centric IPOX 100 Europe (ETF: FPXE), IPOX Nordic Core (IPND: +38.52%), as well as the IPOX China Core (CNI: +26.31%).

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 nor information provided by any of the above service providers and any service or information used to execute any trading strategies are solely based on the independent analysis of the user.

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