The IPOX® Week, August 23th, 2021

  • IPOX® Indexes fall across the board on rise in global risk, renewed Covid-19 uncertainty.
  • IPOX® International (ETF: FPXI) outperforms even as Chinese equities plunge anew.
  • IPOX® SPAC sheds -0.70%. One new SPAC launched in the U.S. last week.
  • No U.S. deals as Korea’s Kakao Pay delays ‘going public’. Quiet week ahead.

WEEKLY Summary:  Amid the potent mix of a) renewed COVID-19 uncertainty and the emergence of a new leadership in Afghanistan driving declines in U.S. interest rates and a bid for the dollar, b) more sharp losses for China-linked growth exposure after more Chinese government measures seemingly seeking to curtail growth driving global equity risk higher (VIX: +20.13%) and c) strong U.S. and European earnings providing the underlying Momentum for the “safe-haven” trade benefiting the broad-based developed markets benchmarks most, the key IPOX® Indexes suffered losses during U.S. options expiration week. In the U.S., e.g., the IPOX® 100 U.S. ETF fell to +5.65% YTD, outperforming U.S. small-caps, while lagging the S&P 500 (SPY), proxy for U.S. large-caps last week. Abroad, big relative strength in select Europe-linked exposure was able to partially offset the impact from the big liquidations-driven declines in China-linked exposure with the IPOX® International ETF (FPXI) dropping to -3.57% YTD, while the IPOX® Europe ETF (FPXE) receded to +12.07% YTD, both outperforming their benchmarks last week.

IPOX® EUROPE Investing with the “FPXE” ETF since 2018

WEEKLY IPOX® portfolio holDings in focuS: Solid earnings alongside positively viewed product announcements propelled select IPOX® Portfolio Holdings, including P/E-backed IPOX® 100 ETF (FPX) stocks mobile application technology developer Applovin (APP US: +23.92%), eye care products maker Spin-off Alcon (ALC US: +15.12%) and mass merchant BJ Wholesale Club (BJ US: +13.14%) to significant weekly gains.  In non-U.S. domiciled exposure tracking the IPOX® International ETF (FPXI) and IPOX® Europe ETF (FPXE), German online food services provider HelloFresh (HFG GY: +14.22%), Dutch payment processor Adyen (ADYEN NA: +11.27%) and Israel-based medical equipment maker Inmode (INMD US: +9.13%) stood out to the upside. Asia- and U.S.-traded exposure led the list of losses across the IPOX® Universe and included firms from the broad market-cap spectrum such as Singapore-based nanotechnology solutions provider Nanofilm (NANO SP: -33.17%), U.S. ride share platform operator and Divvy bike network owner Lyft (LYFT US: -14.05) as well as a slew of U.S.- and Hong-Kong traded China-linked stocks such as internet marketplace Meituan (3690 HK: -17.14%) and biotech Wuxi Biologics (2269 HK: -13.97%).

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -3.11 -1.14
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 -2.55 -4.27
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 -2.28 5.65
IPOX® ESG (IPXT) (USD) 42.29 -3.38 8.45
IPOX® SPAC (SPAC) (USD) 48.52 -0.70 -7.93
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 -1.38 10.81
IPOX® Nordic Core (IPND) (EUR) 59.89 0.21 24.21
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 -4.52 -5.52
IPOX® China Core (CNI) (USD) 88.02 -10.27 -32.33
IPOX® Japan (IPJP) (JPY) 25.75 -2.86 4.52

* 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 -0.76% to -7.98% YTD and +36.76% since its 7/30/2020 launch. SPAC news include: 1) 4 SPACs Announced Merger Agreements such as: a) Silver Crest Acquisition with Canadian coffee chain’s Chinese subsidiary Tim Hortons Chinab) InterPrivate III with ESG-focused fintech Aspiration and c) Aldel Financial with car insurer Hagerty2) 7 SPACs Approved Business Combinations such as: a) Ajax I with British used car market-place Cazoo (CZOO: 8/27); b) RMG Acquisition II with Indian green energy company ReNew Power (RNW: 8/24) and c) Vector Acquisition with satellite launch service provider Rocket Lab (RKLB: 8/25). 3) SPACs reportedly in talks include: Magnum Opus Acquisition with Forbes4) SPACs terminated combinations include: a) Mudrick Acquisition II with Topps and b) Tailwind Acquisition with QOMPLX5) 1 new SPAC launched in the U.S.

WEEKLY GLOBAL Deal-flow Review and Outlook:  Only 5 IPOs launched globally with the average equally weighted deal adding +20.14% based on the difference between the final offering price and Friday’s close. The first time since February, U.S. IPO activity came to a standstill with no IPOs launched. Abroad, Samsung and LG’s metals supplier AJU Steel (139990 KS: +121.85%) more than doubled on debut, while South Korean’s largest online payment provider Kakao Pay (377300 KS) postponed and is now expected to resume in September. Abroad, the first Hong Kong IPO this month Shanghai HeartCare Medical Technology (6609 HK: -24.56%) plunged. Little deal flow is scheduled toward month-end with no upcoming U.S. IPOs and larger sized international offers. Other IPO news include: a) chipmaker GlobalFoundries reportedly confidentially files for IPO; b) sports betting firm Sportsradar files for IPO after terminating SPAC merger talks with Horizon Acquisition II and c) popular Swiss running shoemaker On expect to launch in upcoming weeks.

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