The IPOX® Week, April 22, 2019

  • Most Indexes fall ahead of earnings as health care stocks, high-beta decline; IPOX China (CNI) gains against trend. 15.39% of IPOX 100 U.S. (ETF: FPX) market cap set to report.
  • IPO Deal-flow Review & Outlook: Euphoric U.S. IPO market faced the busiest week YTD as global IPOs leave USD billion 1.07 “on the table”. Hong Kong to launch the largest IPO YTD – Chinese brokerage veteran Shenwan Hongyuan (6806 HK).

Most Indexes fall ahead of earnings as health care stocks, high-beta decline; IPOX China (CNI) gains against trend. 15.39% of IPOX 100 U.S. (ETF: FPX) market cap set to report. Trading in the global equity indexes was characterized by a big divergence in equity index spreads last week: Trade optimism, stable risk (VIX: +0.67%) & yields – which supported the broad-based large-cap centric indexes (SPX: -0.08%) – did little to support the IPOX Indexes which followed the weak sentiment in U.S. small-caps (RTY: -1.20%) weighed by weakness in U.S. health care on political fears and declines in high-beta exposure on profit taking and analyst caution ahead of earnings. After hitting a fresh all-time high above the key 3400 level mid-week, e.g., the IPOX 100 U.S. (ETF: FPX) consolidated, shedding -1.93% to +19.80% YTD, ranking towards the bottom of the weekly U.S. equity indexes performance rankings. With the exception of the IPOX China (CNI), broad-based declines last week extended to other IPOX Indexes. Notable losses amongst individual portfolio holdings in the IPOX Universe concerned firms including Latin American payments processor StoneCo (STNE US: -24.79%), tech enabled health care services platform operator HealthEquity (HYQ US: -12.17%) or biotech Guardant Health (GH US: -9.07%), while specialty stocks including infrastructure software maker Greensky (GSKY US: +8.71%) and camping goods maker Yeti (YETI US: +5.11%) bucked the weakness.

“FPX” ETF celebrates 13-year Listings Anniversary!

Performance Update for IPOX-linked Funds: Amid the shortened trading week, the IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.1 billion First Trust U.S. Equity Opportunities ETF (FPX) slipped to +19.99% YTD, while the IPOX International (IPXI)-linked 5-star First Trust International Equity Opportunities ETF (FPXI) and the IPOX 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) closed the week at +15.68% YTD and +18.03% YTD, respectively. Amongst actively managed funds, the Catalyst IPOX Allocation Fund (OIPAX), a 2019 Thomson Lipper Award Winner, stumbled to +17.61% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -1.11 -11.37 17.89
IPOX® International (IPXI)* (USD) -1.09 -13.41 14.03
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* -1.57 -7.59 17.43
IPOX® 100 U.S. (IPXO)* -1.93 -8.80 19.80
IPOX® 30 U.S. (IPXT) -1.91 -10.28 16.17
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -0.41 -13.46 17.51
IPOX® Nordic (IPND) -0.65 -15.45 16.79
IPOX® 100 Europe (IPOE)* (USD) -1.70 -16.60 14.47
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -2.51 -3.21 0.21
IPOX® China (CNI) (USD) 1.43 -22.83 17.67
IPOX® Japan (IPJP)** (JPY) -0.99 -13.70 3.17

* 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 (IPOM9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: Euphoric U.S. IPO market faced the busiest week YTD as global IPOs leave USD billion 1.07 “on the table”. Hong Kong to launch the largest IPO YTD – Chinese brokerage veteran Shenwan Hongyuan (6806 HK). At least 12 firms debuted across accessible global regions in this holiday-shortened week, with the average (median) equally-weighted company adding +18.44% (+12.62%) based on the difference between the final offer price and Thursday’s close, leaving a combined USD billion 1.07 “on the table” by underpricing their deals, respectively. Top of the list ranked profitable Silicon Valley unicorn cloud video conferencing software provider Zoom (ZM US: +72.22%) which skyrocketed on its priced above elevated range IPO. Another highly anticipated tech unicorn, digital advertising social network platform Pinterest (PINS US: +28.42%) also lived up to its hype, while Europe’s biggest IPO YTD, Italian payment processor Nexi (NEXI IM: -7.78%), had a rather disappointing start, closing the week below final offer. After a busy week for U.S. IPOs, the U.S. market is set to cool, preparing for the upcoming mega IPO of ride sharing operator Uber (UBER). Focus this week is on the Hong Kong IPO of Chinese securities firm Shenwan Hongyuan (6806 HK), the largest Chinese IPO YTD.

Track Priced & Upcoming IPOs on https://ipox.com


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