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.
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