WEEKLY Summary: The IPOX® Indexes recorded massive gains towards month-end, elevated by explosive earnings growth across select IPOX® specialty exposure, smoother sailing in China-linked equities and continued big Momentum in the broad-based benchmarks. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +4.15% to +10.04% YTD, well ahead of the S&P 500 (SPY), benchmark for U.S. stocks. Positive sentiment extended to companies with a non-U.S. domicile with the IPOX® 100 Europe (ETF: FPXE) surging +3.03% to +14.16% YTD, a fresh all-time High, for example. Gains across European and China-domiciled stocks also helped the IPOX® International (ETF: FPXI) to recover more than the previous week’s losses, adding +3.80% to -0.63% YTD. We also note another big week for the IPOX® Japan (IPJP): The liquid benchmark for a broadly diversified group of Japan-domiciled New Listings and Japanese companies pursuing Corporate M&A added +3.86% to +8.56% YTD, extended the relative YTD lead versus the typically well-correlated TSE Mothers Index (TSEMOTHR) to a massive +1725 bps.
IPOX® 100 U.S. Investing with the “FPX” ETF since 2006
IPOX® portfolio holDings in focuS: U.S. domiciled companies tracked in the IPOX® 100 U.S. (ETF: FPX) led the week’s leaderboard with focus on firms including self-driving technology provider 04/2021 IPO Tusimple (TSP US: +47.06%), payment processing company infrastructure software maker 12/2019 IPO Bill.Com (BILL US: +35.65%), IPO M&A energy explorer Range Resources (RRC US: +19.03%), fertility benefits management firm 10/2019 IPO Progyny (PGNY US: +18.91%) and security software maker 06/2019 IPO CrowdStrike (CRWD US: +18.68%). Non-U.S. domiciled firms in focus included blue-chip Chinese Real Estate Services provider 01/2019 IPO Country Garden Services (6098 HK: +11.21%), Israel-based shipping services company 01/2021 IPO ZIM Integrated Shipping Services (ZIM US: +10.92%), Britain’s 02/2021 IPO Auction Technology Group (ATG LN: +10.52%) and Yokneam-based medical devices maker 08/2019 IPO Inmode (INMD US: +9.69%). Kansas-based U.S. online insurance agency 05/2020 IPO Selectquote (SLQT US: -37.45%), Malaysia’s 10/2020 IPO Mr. DIY Group (MRDIY MK: -7.05%) and Korea’s online marketplace 03/2021 IPO Coupang (CPNG US: -4.15%) ranked amongst the worst performing IPOX® Portfolio Holdings last week.
|Select IPOX® Indexes Price Returns||2020||Last WEEK||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||3.89||2.71|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||3.80||-0.63|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||4.15||10.04|
|IPOX® ESG (IPXT) (USD)||42.29||4.27||13.08|
|IPOX® SPAC (SPAC) (USD)||48.52||-0.07||-8.00|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||3.03||14.16|
|IPOX® Nordic Core (IPND) (EUR)||59.89||1.87||26.53|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||3.66||-2.07|
|IPOX® China Core (CNI) (USD)||88.02||6.25||-28.10|
|IPOX® Japan (IPJP) (JPY)||25.75||3.86||8.56|
* 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 -0.07% to -8.00% YTD and +36.66% since its 7/30/2020 launch. SPAC news include: 1) 3 SPACs Announced Merger Agreements include: a) NextGen Acquisition II with Virgin Galactic satellite launch service spinoff Virgin Orbit; b) Magnum Opus Acquisition with business magazine publisher Forbes Global Media and c) Ace Global Business Acquisition with Hong Kong recipe hub startup DayDayCook. 2) 8 SPACs Approved Business Combinations such as: a) Good Works Acquisition with bitcoin miner Cipher Mining (CIFR: 8/30); b) Tortoise Acquisition II with EV charging firm Volta (VLTA) and c) Fifth Wall Acquisition I with smart home automation startup SmartRent (SMRT). 3) SPACs reportedly in talk include: Altitude Acquisition with SoftBank-backed car sharing startup Getaround. 4) 3 new SPACs launched last week in the U.S.
WEEKLY Deal-flow Review and Outlook: 6 IPOs launched globally with the average equally weighted deal adding +14.31% based on the difference between final offer price and Friday’s close. No firms commenced trading in the U.S. Abroad, Palantir-backed Swiss satellite IoT startup Astrocast (ASTRO NO: +105.73%) surged in Oslo, while H.K. IPO medical equipment maker Acotec (6669 HK: -23.95%) sank despite its 650x retail oversubscription. No significant deals are expected fort this week. Other IPO news include a) Amazon-backed EV maker Rivian filed for IPO; b) eyewear maker Warby Parker opted out of traditional IPO to go public via a Direct Listing; c) more private equity firms mulling IPO include TPG, Swedish investment firm Storskogen Group and Goldman Sach’s alternative asset unit Petershill; d) India’s biggest insurer Life Insurance Corp of India (LIC) is on the nation’s IPO fast track; e) restaurant payment software provider Toast, General Atlantic-backed digital engagement platform EngageSmart, Advent-backed food company Sovos Brands and hair care product brand Olaplex and Chinese AI group SenseTime filed.
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.
Copyright © 2001-2022, Lightspeed, LLC. All Rights Reserved.