The IPOX® Week, August 5, 2019

  • IPOX Indexes decline across the board as equity risk surges.
  • IPOX Indexes focusing on non-U.S. domiciled exposure extend relative YTD surge. ETFs in focus: FPXI, FPXE.
  • IPO Deal-flow Review & Outlook: Revolving sushi chain Kura Sushi (KRUS US), software unicorn Dynatrace (DT US) debut with big gains. IPO market slow down seen.

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 

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.

You may also be interested in...

The IPOX® Week, September 20th, 2021
Read More
Understanding the Basics of Option Pricing
Read More
4 Tips for Maximizing Trading Returns
Read More
The IPOX® Week, September 13th, 2021
Read More

Try the demo

Compare Platforms
Check the background of this firm on FINRA's BrokerCheck

Our website uses cookies to improve the performance of our site, to analyze the traffic to our site, and to personalize your experience of the site. You can control cookies through your browser settings. Please find more information on the cookies used on our site in our Privacy Policy. By clicking OK, you agree to allow us to collect information through cookies.