Summary: Big gyrations in U.S. equities on U.S. tax plans amid higher risk (VIX: +6.65%), lower U.S. yields and earnings did little to derail the overall positive sentiment in the IPOX® Indexes towards month-end. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX), underlying for the $BN 2.1 FPX ETF, declined -0.39% to +6.76% YTD, outperforming the Nasdaq 100, while slightly lagging the S&P 500 (SPX) last week. Sentiment was better for non-U.S. domiciled stocks, with the IPOX® International, tracked by the $BN 1.2 FPXI ETF, adding +1.10% to -0.28% YTD, significantly ahead of the benchmarks. Here, strength was driven by gains in the IPOX China (CNI) and in the IPOX® 100 Europe (ETF: FPXE), which continued its march towards an all-time high with a gain of +0.36% to +3.60% YTD, outpacing the benchmarks.
IPOX® International Investing with the FPXI ETF since 2015:
Key FPXI and FPXE ETF portfolio holding German Covid-19 vaccine maker BioNTech (BNTX US: +14.16% and +112.22% YTD) continued to lead the list of best IPOX® performers, as the stock – untracked by the major benchmarks including the Nasdaq 100 (NDX) – continued to close its valuation gap with U.S. counterpart Moderna (MRNA US: +1.57% and +66.20% YTD). We also note Friday’s fresh all-time high in NY-based pretzel maker $BN 3.8 Utz Brands (UTZ US: +6.67%), one of four demerged SPACs currently tracked in the IPOX® 100 U.S. (ETF: FPX). The stock continued to dodge some of the negative sentiment linked to (demerged) SPACs and rose to +24.03% YTD, driven by upgrades, growth- and corporate actions optimism. After the big run-up, select Nordic-domiciled exposure fell sharply last week, including Stockholm-based private equity firm EQT (EQT SS: -8.54%), cloud communication platform operator Softbank-backed Sinch (SINCH SS: -6.78%), digital wealth management company 11/2020 IPO Nordnet (SAVE SS: -5.23%) and video games developer Embracer Group (EMBRACB SS: -3.30%).
|Select IPOX® Indexes Price Returns (%)||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||0.72||3.50|
|IPOX® International (IPXI) (USD) (ETF : FPXI)||72.15||1.10||-0.28|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-0.39||6.76|
|IPOX® ESG (IPXT) (USD)||42.29||0.43||6.12|
|IPOX® SPAC (SPAC) (USD)**||48.52||0.23||-1.95|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 100 Europe (IPOE) (USD) (ETF: FPXE)||35.14||0.36||3.60|
|IPOX® Nordic Core (IPND) (EUR)||59.89||-1.94||14.15|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||-0.25||1.79|
|IPOX® China Core (CNI) (USD)||88.02||4.28||-2.97|
|IPOX® Japan (IPJP)(JPY)||25.75||-1.04||2.20|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOM1).
The IPOX® SPAC Index (SPAC) added +0.23% to -1.95% YTD and +45.64% since its 7/30/2020 launch. News include: 1) 3 SPACs Announced Merger Agreements include: a) Horizon Acquisition with Vivid Seats; b) Fifth Wall Acquisition I with SmartRent; and c) Roman DBDR Tech Acquisition with CompoSecure. 2) 3 SPACs Approved Business Combination include: a) Northern Genesis with Lion Electric (LEV: TBA); b) GigCapital3 with Lighting eMotors (ZEV: TBA); and c) dMY Technology Group II with Genius Sports (GENI). 3) SPACs reportedly in talks include: a) SoftBank backed SVF Investment 3 with MapBox. 4) No SPAC launched last week.
IPO Deal-flow Review and Outlook: At least 21 notable IPOs launched last week with the average (median) equally weighted deal adding +23.36% (+26.81%) based on the final offer price and respective Friday’s close. In the U.S., extra-low (5%!!!) float automation platform unicorn UiPath (PATH US: +33.64%), KKR-backed cybersecurity firm KnowBe4 (KNBE US: +44.13%), biofacturing firm Zymergen (ZY US: +28.65%) and swimming pool maker Latham (SWIM US: +43.42%) all debuted successfully, while European B2B fund distributor Allfunds (ALLFG NA: +20.42%), online recruiting platform Visional (4194 JP: +30.00%) and Trip.com (9961 HK: +12.69%) all rose abroad. The hot IPO market is set to continue with pediatric home care platform Aveanna (AVAH US), talent agency and UFC owner Endeavor (EDR US), Swedish contract drugmaker PolyPeptide (PPGN SW) and German laboratory diagnostics provider Synlab (SYAB GR) set to go public. In other IPO news: 1) oat milk maker Oatly, LinkedIn-backed event streaming platform Confluent and Peter Thiel-backed psychedelic drug developer Atai file for IPO; 2) social media message platform Discord rejects Microsoft’s bid to pursue IPO; 3) foreign deals in the pipeline include U.K. cybersecurity firm Darktrace, German online car retailer MeinAuto, French cloud-computing firm OVH and Saudi exchange Saudi Tadawul Group.
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