IPOX Indexes drop on rates anxiety & recession fears. IPOX China (CNI), IPOX International log more (relative) YTD gains. Amid the continuing plunge in U.S. yields increasing U.S. recession anxiety and more political U-turns over global trade, most IPOX Indexes finished another volatile week with weekly losses. In the U.S., e.g., the diversified FANG-free IPOX 100 U.S. (ETF: FPX) declined by -1.32% to +25.24% YTD, lagging the S&P 500 (SPX) – benchmark for U.S. stocks – by -30 bps. on the week, while big gains in select exposure after strong earnings lifted the 60-company strong IPOX China Core (CNI) to a weekly gain. We also note more relative gains for the IPOX International (ETF: FPXI) which extended its YTD relative performance jump vs. the International Market by +101 bps. to a massive +1688 bps. YTD. Big upside in specialty stocks insulated from global trade & recession anxiety drove the good (re-
IPOX® International (ETF: FPXI) vs. Ultra-Cheap Benchmarks:
lative) showing in the IPOX International (ETF: FPXI) and IPOX China Core (CNI), including Chinese live streaming games platform Huya (HUYA US: +19.13%), Brazils payment processor Pagseguro Digital (PAGS US: +12.21%) & managed care provider Hapvida Participacoes (HAPV3 BS: +9.02%) and oncology company Novocure (NVCR US: +8.37%). High-beta growth stocks weighed on the IPOX 100 U.S. (ETF: FPX), including ride sharer Lyft (LYFT US: -11.25%) and online furniture seller Wayfair (W US: -11.60%).
IPOX-linked Fund Performance Updates: The IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.3 billion First Trust U.S. Equity Opportunities ETF (FPX) fell to +25.83% YTD, while the IPOX International (IPXI)-linked 5-star (3-years) First Trust International Equity Opportunities ETF (FPXI) and the IPOX® 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) closed at +23.38% YTD and +21.93% YTD, respectively. IPOX-linked mutual fund Catalyst IPOX® Allocation Fund (OIPAX US) fell to +22.81% YTD.
|Select IPOX® Indexes Price Returns (%)||Last Week||2018||2019 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-1.64||-11.37||22.46|
|IPOX® International (IPXI)* (USD)||-0.48||-13.47||21.49|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXC)*||-1.17||-7.59||16.12|
|IPOX® 100 U.S. (IPXO)*||-1.32||-8.80||25.24|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||0.00||-13.46||21.95|
|IPOX® Nordic (IPND)||-0.63||-15.45||22.15|
|IPOX® 100 Europe (IPOE)* (USD)||-1.04||-16.60||19.51|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-2.34||-3.21||1.08|
|IPOX® China (CNI) (USD)||0.93||-22.83||8.21|
|IPOX® Japan (IPJP)** (JPY)||-1.17||-13.70||-2.82|
* 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 (IPOU9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.
IPO Deal-flow Review & Outlook: First IPO filings unveiled for WeWork, Cloudflare and SmileDirectClub. More divestures of overseas interests as ChemChina-owned Swiss agrochemical company Syngenta in talks for world’s biggest chemical IPO. Three firms debuted last week in markets open to global investors, with the average equally-weighted stock adding +6.09% based on the difference between IPO offer price and Friday’s close. Regional bank CrossFirst (CFB US: +10.00%) and Chinese lending platform 9F (JFU US: +10.00%) traded barely above offer upon debut, while Irish insurance software developer FINEOS (FCL AU: +10.00%) ranked as the largest IPO in Australia YTD and NZX readies its largest IPO since ’16 this week – New Zealand’s fourth largest port operator Napier Port (NPH NZ). Amid the seasonal August weakness, more filings indicate that firms accelerate their IPO plans into Q4 including WeWork, a workspaces leasing company with tech unicorn valuation, web infrastructure and security company Cloudflare, and tele-orthodontics startup invisible aligner provider SmileDirectClub. Other notable news include Switzerland pesticide maker Syngenta talks to re-list, just two years into its $43 billion acquisition by China state-owned ChemChina. Other recent China overseas divestments concern HNA Groups sell-down of its stake in hotel operator Hilton Worldwide, ChemChina’s re-listing of Italian tire maker Pirelli (PIRC IM: -3,83%), the IPO of Financial Huatai-backed AssetMark (AMK US: -7.43%) and the IPO of IRONMAN rights owner WSG (WSG US: -9.14%) which Wanda Group had acquired in 2015.
Track Priced & Upcoming IPOs on https://ipox.com
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