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%).
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