WEEKLY Summary: The IPOX® Indexes started August with strong gains, underpinned by good average earnings and big momentum in the Developed Markets benchmarks. In the U.S., e.g., the IPOX® 100 U.S. (IPXO), underlying for the $2.2 billion “FPX” ETF, added +1.37% to +8.84% YTD, +43 bps. ahead of the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Strength extended to markets abroad. Here, further declines in hard-hit China-linked exposure did little to derail a strong rally in the IPOX® International (IPXI), underlying for the $1.3 billion “FPXI” ETF, adding +2.00% to -1.92% YTD, +104 bps. ahead of its benchmark. We also note further gains in the IPOX® Europe (ETF: FPXE). The benchmark for European domiciled IPOs, Spin-offs and IPO M&A trading across the world regions and most innovative proxy for European growth added +1.13% to +11.35% YTD, also well ahead of its benchmark.
IPOX® EUROPE Investing with the “FPXE” ETF since 2018
IPOX® portfolio holdings in focus: With earnings season in full swing and more corporate actions activity, there was wide distribution in individual IPOX® portfolio returns. Top of the list must rank 2018 Spin-off U.S-traded Veoneer (VNE US: +23.53%), a holding in the IPOX® 100 Europe (ETF: FPXE). The Swedish auto parts maker surged anew after no other than U.S. semiconductor devices maker Qualcomm (QCOM US: -2.33%) entered the bidding war for the company. Last week also saw fresh post-IPO highs in IPOX® International (ETF: FPXI) portfolio holdings German Covid-19 vaccine maker BioNTech (BNTX US: +18.47%), Brazil’s pet product retails Pet Center Comercio (PETZ3 BZ: +15.37%), Canada’s infrastructure software maker Lightspeed POS (LSPD CN: +14.31%) and Saudi Arabia’s medical services group Dr. Sulaiman Al Habib (SULAIMAN AB: +9.68%). U.S. domiciled exposure tracked in the IPOX® 100 U.S. (ETF: FPX) recording significant upside included biotech Maravai LifeSciences (MRVI US: +22.31%), social media software maker Sprout Social (SPT US: +18.18%), retailer Albertsons Cos. (ACI US: +13.70%) and IPO M&A real estate firm Jones Lang LaSalle (JLL US: +13.11%). U.S. biofacturing company 04/2021 IPO Zymergen (ZU US: -64.56%), Israel’s online marketplace operator Fiverr International (FVRR US: -32.30%) and Sweden’s video game developer Embracer (EMBRACB SS: -15.13%) led the list of 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||1.86||2.50|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||2.00||-1.92|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||1.37||8.84|
|IPOX® ESG (IPXT) (USD)||42.29||2.70||13.52|
|IPOX® SPAC (SPAC) (USD)||48.52||-0.62||-7.11|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||1.13||11.35|
|IPOX® Nordic Core (IPND) (EUR)||59.89||0.50||24.69|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||0.20||-1.53|
|IPOX® China Core (CNI) (USD)||88.02||-2.12||-24.53|
|IPOX® Japan (IPJP) (JPY)||25.75||0.54||7.17|
* 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 -0.62% to -7.11% YTD and +37.98% since its 7/30/2020 launch. SPAC news include: 1) 5 SPACs Announced Merger Agreements: a) CM Life Sciences III with biotech EQRx; b) Growth Capital with lidar maker Cepton Technologies and c) FTAC Hera Acquisition with fintech Pico Quantitative Trading. 2) 4 SPACs Approved Business Combinations such as: a) Reinvent Technology Partners Z with insurtech Hippo (HIPO); b) Gores Holdings V with Ardagh Group metal packing unit Ardagh Metal Packaging (AMBP) and c) Reinvent Technology Partners with electric vertical aircraft manufacturer Joby Aviation (JOBY: 8/10). 3) SPACs reportedly in talk: a) Gores Holdings VII with plant-based fiber packaging maker Footprint and b) Sandbridge X2 with rowing machines maker Hydrow. 4) 7 new SPACs launched last week in the U.S.
GLOBAL Deal-flow Review and Outlook: 11 IPOs launched globally with the average EW deal adding +23.96%. Most IPOs rose with three billion-dollar offers abroad, including South Korea’s first digital bank KakaoBank (323410 KS: +78.97%), Indonesia e-commerce giant Bukalapak (BUKA IJ: +24.71%) and Shell-Cosan joint venture biofuel company Raizen (RAIZ4 BZ: -4.05%), Brazil’s biggest listing YTD. The U.S. market slowed down with four postponed offers. Amid its 60% downsized offer, PE-backed grill maker Weber (WEBR US: +29.07%) recorded a solid first week of trading. Korean games developer Krafton (259960 KS) and Goldman Sachs-backed Brazilian medical care provider Oncoclinicas (ONCO3 BZ) are scheduled to trade this week. Chinese EV maker Li Auto (2015 HK) is also set for its home-coming Hong Kong secondary listing. Other IPO news include: a) HCI Group subsidiary insurtech TypTap filed confidently and b) data analytic vendor SAS Institute rumored to plan IPO after sale talk with Broadcom (AVGO US: +0.00%) ended in July.
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