The IPOX® Week, August 24th, 2020

  • Most IPOX Indexes surge to close at weekly all-time Highs / IPOX SPAC gains +0.88% last week.
  • IPOX 100 U.S. (ETF: FPX) adds 3.17% to +15.26% YTD. IPOX International (ETF: FPXI) adds 2.16% to +42.05% YTD. IPOX 100 Europe (ETF: FPXE) drops -0.49% to +16.08% YTD.
  • Amid quiet week for global IPOs, Chinese EV maker Xpeng (XPEV US) set for U.S. debut.

Track the performance of U.S. SPACs live with the IPOX® SPAC Index (BBG: SPAC). IPOX is pleased to note the launch of the IPOX® SPAC, a benchmark focusing on Special Purpose Acquisition Vehicles. The index added +0.88% last week, outperforming the S&P 500 (SPX) and Russell 2000 (RTY).

Most IPOX Indexes surge to close at weekly all-time Highs. Most IPOX Indexes finished U.S. options expiration week at or near weekly all-time Highs as low rates, momentum in technology stocks and subdued risk (VIX: +2.22) outweighed economic anxiety related to COVID-19 anew. In the U.S., e.g., the FANG-free, broad-based IPOX 100 U.S., underlying for the $1.5 billion “FPX” ETF, added +3.17% to +15.26% YTD, extending the YTD lead vs. the S&P 500 (SPX) to +1011 bps. Gains extended to non-U.S. domiciled exposure with the IPOX International (ETF: FPXI) adding +2.16%

+42.05% YTD. Sentiment somewhat deteriorated towards the week-end following weaker-than-expected earnings by select IPOX Holdings including eye care products maker Spin-off Alcon (ALC US: -4.23%), Chinese e-commerce platform operator Pinduoduo (PDD US: -1.22%), private equity firm EQT (EQT SS: -21.38%) and Dutch payments processor Adyen (ADYAN NA: -3.36%). The great showing of the IPOX Portfolios focusing on developed Asia-Pacific with the IPOX Asia-Pacific (IPTA) and IPOX Japan (IPJP) remains notable, with both portfolios closing out the week at a fresh record. Gains across the New Generation of Japan-traded services stocks significantly contributed, including surging application software maker Freee KK (4478 JP: +25.38%), professional services firm Medley (4480 JP: +22.97%), IT Services provider Change (3962 JP: +19.93%), statistics provider JMDC (4483 JP: +10.68%) and e-commerce platform operator IPOX International (ETF: FPXI) portfolio holding $ 7.5 billion Mercari (4385 JP: +4.83%).

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 3.48 27.93 36.49
IPOX® International (IPXI)* (USD) (ETF: FPXI) 2.16 31.37 42.05
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 3.17 29.60 15.26
IPOX® ESG (IPXT) (USD) 3.33
IPOX® SPAC (SPAC) (USD) 0.88
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -0.96 34.55 21.93
IPOX® Nordic (IPND) -0.18 38.52 35.46
IPOX® 100 Europe (IPOE)* (USD) -0.49 30.97 16.08
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 3.18 4.41 29.93
IPOX® China (CNI) (USD) 3.51 26.31 46.01
IPOX® Japan (IPJP)** (JPY) 3.70 37.91 12.60

* 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 (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
TESLA INC 24.19 EQT AB -21.38
IRHYTHM TECHNOLOGIES 19.84 ASTON MARTIN LAGONDA -15.33
LIVONGO HEALTH INC 18.60 PARSONS CORP -9.94
XIAOMI CORP 18.38 GFL ENVIRONMENTAL INC -9.64
ZOOM VIDEO 18.28 ALECTOR INC -8.25
SEA LTD 16.54 ZUR ROSE GROUP AG -8.21
BHG GROUP AB 12.84 NETWORK INTERNTL. -8.05
BILL.COM HOLDINGS INC 11.84 KEYSIGHT TECH -6.87
MEITUAN DIANPING-CLASS 11.56 BECLE SAB DE CV -6.66
BJS WHOLESALE CLUB 11.09 PARADOX INTERACTIVE -6.10

IPO Deal-flow Review and Outlook: Global IPO pipeline set to slow toward month-end; Chinese EV maker Xpeng lined up for U.S. debut. 6 companies IPO’d across the global regions last week, with the average (median) equally-weighted deal adding +23.52% (+20.37%) based on the difference between offer price and respective Friday’s close. Amid the seasonal market slowdown in the U.S., all IPO deals originated in the health care sector: Upsized, above-range commercial-stage Harmony Biosciences (HRMY US: +50.00%) and pre-clinical stage Kymera Therapeutics (KYMR US: +66.30%) continued to benefit from strong sector momentum and soared on debut. With most IPO markets set to quiet down this week, Chinese EV maker Xpeng (XPEV US) is scheduled to list its $1 billion IPO on the NYSE this week. Other IPO news Include: 1) Airbnb confidentially filed for the most anticipated IPO of the year, 2) KKR-backed sporting goods discount store Academy Sports filed confidentially, 3) corporate software developer Asana to set proceed with a Direct Listing on the NYSE, 4) a flood of Brazilian IPOs are lining up for debut, including home appliances retailer Le Biscuit, broadband internet service provider Triple Play, Warburg-backed pet shop chain Petz, K-12 school operator Eleva and MRV real estate development unit Urba.

Track global deal flow live on: https://bit.ly/2WMvnT9

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