WEEKLY Summary: Amid stable yields, lower risk (VIX: -4.33) and more smooth sailing for the broad-based, diversified and derivatives-heavy benchmarks, the IPOX® Indexes finished mixed ahead of monthly U.S. options expiration week. In the U.S., e.g., the IPOX® 100 U.S. (IPXO), underlying for the $2.1 billion “FPX” ETF, declined -0.67% to +8.11% YTD, lagging U.S. large-caps, while outperforming U.S. small-calls. Sentiment was better for stocks domiciled abroad with the IPOX® International (IPXI), underlying for the $1.3 billion “FPXI” ETF, adding +0.16% to -1.76% YTD. We also note another strong week in the IPOX® Europe (ETF: FPXE) which rose for a sixth consecutive week. The benchmark for European domiciled IPOs, Spin-offs and IPO M&A trading across the world regions and most innovative proxy for European growth added +0.90% to +12.36% YTD, closing the week at yet another weekly all-time high.
IPOX® EUROPE Investing with the “FPXE” ETF since 2018
WEEKLY IPOX® portfolio holDings in focuS: With earnings season in full swing and more corporate actions activity, there was wide distribution in individual IPOX® portfolio returns. Top of the list ranks U.S. cloud-based artificial intelligence lending platform operator Upstart Holding (UPST US: +53.86%), a portfolio holding in the IPOX® 100 U.S. (ETF: FPX). The stock surged after reporting blow-out earnings. Other companies recording big gains included P/E backed U.S. retailer Albertsons (ACI US: +21.54%), London-traded food delivery platform operator Deliveroo (ROO LN: +18.76%), U.S. traded application software maker Palantir Technologies (PLTR US: +14.12%), Chinese real estate services provider Sunac Services (1516 HK: +12.76%) and innovative audio products manufacturer Sonos (SONO US: +11.29%), which again exceeded earnings expectations and also won a first round in a landmark patent case against internet search behemoth Google (GOOG US: +1.01%). We also note a fresh weekly record in Riyadh-traded health care services provider Dr. Sulaiman Al Habib (SULAIMAN AB: +1.06%). Weak earnings pressured online insurance agent KS-based Selectquote (SLQT US: -25.10%), Chicago-based health services provider Oak Street Health (OSH US: -20.24%) and luxury online marketplace operator The RealReal (REAL US: -18.41%). Swedish-domiciled New Listings conducting their respective IPO in the U.S. slumped anew, including dairy products maker USD billion 10.0 Oatly (OTLY US: -8.66%), USD billion 3.6 biotech Olink (OLK US: -19.72%) and streaming music provider Spotify (SPOT US: -4.72%).
|Select IPOX® Indexes Price Returns||2020||Last WEEK||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-0.45||2.04|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||0.16||-1.76|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-0.67||8.11|
|IPOX® ESG (IPXT) (USD)||42.29||-1.12||12.25|
|IPOX® SPAC (SPAC) (USD)||48.52||-0.18||-7.28|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||0.90||12.36|
|IPOX® Nordic Core (IPND) (EUR)||59.89||-0.59||23.95|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||0.49||-1.05|
|IPOX® China Core (CNI) (USD)||88.02||-0.07||-24.58|
|IPOX® Japan (IPJP) (JPY)||25.75||0.41||7.60|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).
IPOX® SPAC INDEX (SPAC): The Index fell -0.18% to -7.28% YTD and +37.73% since its 7/30/2020 launch. SPAC news include: 1) 7 SPACs Announced Merger Agreements such as: a) Environmental Impact Acquisition with GreenLight Biosciences; b) First Reserve Sustainable Growth with EO Charging and c) MedTech Acquisition with Memic Innocative. 2) The following 6 SPACs Approved Business Combinations: a) Greenvision Acquisition with Helbiz (HLBZ: 8/16); b) Software Acquisition Group II with Otonomo (OTMO: 8/16) and c) Stable Road Acquisition with Momentus (MNTS). 3) SPACs reportedly in talks: a) Silver Crest Acquisition with Tim Hortons China, and b) Interprivate III Financial Partners with Aspiration. 4) 17 new SPACs launched in the U.S.
WEEKLY GLOBAL Deal-flow Review and Outlook: 11 IPOs launched with the average equally-weighted deal adding +4.07%. Asia-Pacific saw two billion-dollar offerings with Korean video game developer Krafton (259960 KS: -12.25%) disappointing on the second largest Korean IPO of the year and Chinese EV maker Li Auto (2015 HK: -2.88%), amid fast entry to Hang Seng Composite, still sliding on its home-coming secondary listing in Hong Kong. Brazilian drug distributor CM Hospitalar (VVEO3 BZ: +20.48%) surged to be the best performing deal., while U.S. biotech Eliem Therapeutics (ELYM US: +15.60%) also gaining. Global IPO activity is set to slow down with Korea’s largest online payment services provider Kakao Pay (377300 KS) scheduled as the main deal. Other IPO news: a) Carlyle-backed Brazilian restaurant chain Madero, UK e-commerce Very Group, Singapore-based agricultural commodity trader Olam’s food ingredients unit and Buffett-backed Brazilian fintech Nubank all mull IPO; b) plant-based burger maker Impossible Foods rumors to explore for IPO or SPAC merger and c) new report on TikTok parent company ByteDance to revive Hong Kong listing plan.
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