IPOX Indexes decline across the board as equity risk surges. Internationally-focused IPOX Indexes extend relative surge. Amid renewed uncertainty (over global trade) driving a big drop in U.S. yields, U.S. Dollar strength, mixed IPOX earnings and a surge in risk (VIX: +49.01%) during FED week, the IPOX Indexes fell from all-time highs. In the U.S., e.g., the IPOX 100 U.S. (ETF: FPX) declined
IPOX 100 U.S. Investing with “FPX” ETF since 2006:
by -3.79% to +25.91% YTD, outperforming the Nasdaq 100 (NDX: -4.04%), but lagging the S&P 500 (SPX), benchmark for U.S. stocks, by -69 bps. last week. Abroad, we note the big relative performance jump in the IPOX Indexes focusing on non-U.S. domiciled exposure, including the IPOX International (ETF: FPXI) and IPOX Europe (ETF: FPXE), with the respective portfolios extending the lead vs. the local benchmarks to a massive +1226 bps. (ETF: FPXI) and +1585 bps. (ETF: FPXE), respectively. Big moves in individual equities included educational software provider Pluralsight (PS US: -39.41%), software maker Tenable Holding (TENB US: -21.14%) and payment processor Square (SQ US: -14.92%) after earnings pressured the IPOX 100 U.S. (ETF: FPX), while strong gains in cancer treatment company Novocure (NVCR US: +9.10%), internet-based services provider Norway-based Adevinta (ADEA NO: +7.80%) and IPOX heavyweight German-based medical technology maker Siemens Healthineers (SHL GY: +6.06%) helped to mitigate losses in the non-U.S. domiciled IPOX Portfolios.
IPOX-linked Funds Update: Amid the trade war escalation, the IPOX 100 U.S.-linked, 5-star (10-years) $1.2 billion First Trust U.S. Equity Opportunities ETF (FPX US) declined to +26.42% YTD, while the IPOX International (IPXI)-linked 5-star (3-years) First Trust International Equity Opportunities ETF (FPXI US) and IPOX® 100 Europe-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE US) closed at +23.45% YTD and +24.38% YTD, respectively. The IPOX-linked mutual fund Catalyst IPOX® Allocation Fund (OIPAX US) fell to +23.94% YTD.
|Select IPOX® Indexes Price Returns (%)||Last Week||2018||2019 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-3.01||-11.37||23.66|
|IPOX® International (IPXI)* (USD)||-1.38||-13.47||21.35|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXC)*||-3.31||-7.59||17.96|
|IPOX® 100 U.S. (IPXO)*||-3.79||-8.80||25.91|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||-1.07||-13.46||23.97|
|IPOX® Nordic (IPND)||-1.20||-15.45||24.37|
|IPOX® 100 Europe (IPOE)* (USD)||-1.26||-16.60||20.92|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-1.22||-3.21||5.76|
|IPOX® China (CNI) (USD)||-3.94||-22.83||8.60|
|IPOX® Japan (IPJP)** (JPY)||-0.87||-13.70||-0.83|
* 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 (IPOU9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.
IPO Deal-flow Review & Outlook: Revolving sushi Kura Sushi (KRUS US), software unicorn Dynatrace (DT US) debut with big gains. IPO market slow down seen. At least 11 firms debuted last week in markets open to global investors, with the average (median) equal-weighted stock adding +23.46% (+14.31%) based on the difference between the final IPO price and Friday’s close. Conveyor belt sushi chain Kura Sushi (KRUS US: +74.29%) and private equity backed software unicorn Dynatrace (DT US: +62.94%) soared on debut, while Canadian cannabis company Sundial Grower (SNDL US: -19.62%) slumped. Abroad, the IPO of the Tel Aviv Stock Exchange (TASE IT: +28.87%), professional wresting promotion NJPW owner Bushiroad (7803 JP: +14.39%) and Australia-traded U.S. installment payment startup Sezzle (SZL AU: +95.9%) recorded large initial gains. Amid U.S. summer holiday season, we see fewer deals in the pipeline this week, including Hong Kong-based financial services provider AMTD International (HKIB US) and Israeli medical aesthetic devices manufacturer InMode (INMD US) lining up to debut in the U.S. July IPO Market Recap: At least 45 firms* debuted in July, raising ca. $8.97 billion with an average (median) initial return of +9.88% (+2.61%), a significant decline from last year’s 70 IPOs and $18.0 billion proceed raised.
*initial screening applies
Track Priced & Upcoming IPOs on https://ipox.com
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