The IPOX® Week, August 2nd, 2021

  • IPOX® Returns diverge sharply during July: IPOX® 100 Europe (ETF: FPXE) leads with +6.56% gains.
  • IPOX® 100 U.S. (ETF: FPX) sheds -0.36%, IPOX® International (ETF: FPXI) drops -3.16% as China slumps.
  • 30 SPACs raise $5.69 billion during July. IPOX® SPAC Index (SPAC) drops -4.54%.
  • July sees record number of IPOs across global regions. More deals lined up.

Monthly Summary: Amid lower U.S. yields, higher risk (VIX: +15.22%) and the big overhang from regulatory actions affecting China exposure, the IPOX® Indexes traded mixed. In the U.S., e.g.., the IPOX® 100 U.S. (ETF: FPX) shed +0.36% to +7.38% YTD, outperforming U.S. small caps while lagging the S&P 500 (SPX) and Nasdaq 100 (NDX). Abroad, strong earnings across Nordic and Continental European exposure drove the IPOX® Europe (ETF: FPXE) to close the month at a fresh monthly all-time high, adding a massive +6.56% to +10.11% YTD, +5.34 bps. ahead of the European market. Big strength in the IPOX® Europe (ETF: FPXE), however, was not enough to fully compensate for the slump in China-linked exposure affecting the IPOX® International (ETF: FPXI), which shed -3.16% to -3.85% YTD, lagging its benchmark by -203 bps.

IPOX® europe Investing with the “FPXe” ETF since 2018

IPOX® portfolio hodlings in focuS during july: Amid earnings and big corporate actions activity, European- domiciled companies led the list of best performing IPOX® Portfolio Holdings and included U.S.(only)-traded German Covid-19 vaccine maker BioNTech (BNTX US: +46.66%), buy-out target Swedish car technology provider Spin-off Veoneer (VNE US: +35.88%), Swedish private equity firm INVESTOR-owned EQT (EQT SS: +33.61%), Belgian automotive retailer, Autoglass and Moleskine-owner IPO M&A D’ieteren  (DIE BB: +32.45%),  Swedish plumbing services firm Instalco (INSTAL SS: +30.65%), Swedish application software maker Softbank-owned  Sinch (SINCH SS: +20.76%),  British auction platform technology provider 02/2021 IPO Auction Technology Group (ATG LN:  +17.88%) and IPOX® heavyweight Dutch payment processor Adyen (ADYEN NA: +11.11%). Biotech’s Biohaven (BHVN US: +29.80%) and C4 Therapeutics (CCCC US: +14.01%), Direct listing application software maker Asana (ASAN US: +14.56%) and United Technology 03/20 Spin-off refrigerator maker Carrier (CARR US: +13.68%) ranked amongst the best performing companies in the IPOX® 100 U.S. (ETF: FPX).    Losses amongst China-domiciled stocks extended across industries and market-cap spectrum with e-commerce behemoth Meituan (3690 HK: -32.90%), real estate services providers Sunac Services (1516 HK: -27.21%) and Country Garden Services (6098 HK: -24.85%), as well as biotech Cansino (6185 HK: -20.26%) and Zai Lab (ZLAB US: -18.29%) hit most.

Select IPOX® Indexes Price Returns 2020 Last MONTH YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -2.99 0.63
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 -3.16 -3.85
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 -0.36 7.38
IPOX® ESG (IPXT) (USD) 42.29 0.83 10.53
IPOX® SPAC (SPAC) (USD) 48.52 -4.54 -6.53
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 6.56 10.11
IPOX® Nordic Core (IPND) (EUR) 59.89 10.29 24.07
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 -3.80 -1.70
IPOX® China Core (CNI) (USD) 88.02 -19.70 -22.89
IPOX® Japan (IPJP) (JPY) 25.75 -1.36 6.60

* 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 -4.54% in July to -6.53% YTD and +38.84% since its 07/20 launch. During July, 30 new SPACs raised ca. $5.69 billion and recording an average (median) initial return of -0.42% (-0.30%) with Churchill Capital AltC Acquisition (ALCC US) ranking as the largest deal. 29 SPACs announced a merger target with Lionheart Acquisition and Medicare & Medicaid recovery platform MSP Recovery set for the second largest SPAC merger transaction in history. 26 SPACs approved business combinations include Churchill Capital IV with EV manufacturer Lucid Motors (LCID) and Gores VI with 3D camera and virtual tour platform Matterport (MTTR). 3 SPACs terminated merger agreements in July include Pershing Square Tontine with Universal Music Group.

Monthly GLOBAL Deal-flow Review and Outlook:    At least 143 notable IPOs launched (ex. China A-shares) during July, raising ca. $36.31 billion in the process and recording an average (median) equally weighted initial return of +12.05% (+6.16%). The U.S. continued to dominate with 59 IPOs (41.26%) and ca. $18.14 billion in proceeds raised (49.96%).  U.S. Trading platform operator Robinhood (HOOD US), Italian Acciona’s spin-off energy unit Acciona Energia (ANE SM) and specialty insurance group Ryan Specialty (RYAN US) ranked as the biggest deals. Other notable firms included the largest Indian tech IPO, food delivery startup Zomato (ZOMATO IN), well-received London private equity firm Bridgepoint (BPT LN), first LSE Direct Listing fintech unicorn Wise (WISE LN) and Abu Dhabi Satellite operator Yahsat (YAHSAT UH). Global IPO activity is expected to remain robust throughout August with grill maker BDT-owned Weber (WEBR US), Brazilian biofuel producer Raizen (RAIZ4 BZ), Indonesia e-commerce giant Bukalapak (BUKA IJ), South Korea digital lender KakaoBank (323410 KS), video game developer Krafton (259960 KS) and payment services provider Kakao Pay (377300 KS) set to go public.

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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