The IPOX® Week, August 16th, 2021

  • IPOX® Indexes trade mixed. IPOX® Europe (ETF: FPXE) rises for 6th consecutive week.
  • IPOX® International (ETF: FPXI) adds +0.16%. Swedish U.S.-traded deals drop sharply.
  • IPOX® SPAC declines by -0.18%. 17 new SPACs launched in the U.S. last week.
  • Krafton and Brazil’s Oncoclinicas decline. Korea’s Kakao Pay this week’s main deal.

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 Biosciencesb) First Reserve Sustainable Growth with EO Charging and c) MedTech Acquisition with Memic Innocative2) 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 Aspiration4) 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.

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“content”) are 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 or contracts. 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. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services or commentary provided by any of the market commentators/educators or service providers and any information used to execute any trading strategies are solely based on the independent analysis of the user.

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