The IPOX® Week, December 21th, 2020

  • IPOX Indexes extend historic run-up, Strong earnings, index inclusion effects, drive big returns. IPO M&A Tesla exits IPOX.
  • IPOX ETFs (FPX, FPXI, FPXE) close week at all-time Highs; “FPX” ETF hits the $2 billion AUM mark.
  • IPOX SPAC (SPAC) rises +1.74% last week.

IPOX extends historic run-up during U.S. expiration week, Tesla (TSLA) exits IPOX. Amid global COVID 19 vows, the IPOX Indexes continued to record significant gains during U.S. expiration and IPOX rebalancing week, beating all benchmarks anew. In the U.S., e.g., the FANG-free, diversified IPOX 100 U.S. (ETF: FPX), benchmark for U.S. New Listings performance, added +4.15% to +52.06% YTD, now a massive +3725 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. Gains extended to non-U.S. domiciled exposure tracked by the IPOX International (ETF: FPXI) and IPOX 100 Europe (ETF: FPXE), which added +3.23% to +66.07% YTD and +3.20% to +33.71% YTD, respectively, with both

portfolios closing out the week at fresh all-time Highs. Momentum buying in specialty exposure and index inclusion effects drove outsized gains, including real estate website operator Redfin (RFIN US: +28.24%), fitness firm Peloton (PTON US: +19.42%) and chip maker IPO M&A Marvell Technologies (MRVL US: +10.64%). We note Fridays exit of electric car maker IPO M&A Tesla (TSLA US: +13.94%), which had re-entered IPOX after the acquisition of alternative energy firm SolarCity, a former IPOX portfolio holding.

IPOX® SPAC Index (SPAC): The Index added +1.74% to +40.64% since its July 30 launch. SPAC news include 1) 6 SPACs Announced Merger Agreement/LOI include: a) FinServ Acquisition with e-commerce POS provider Katapult; b) Northern Star Acquisition with dog products subscription box BarkBox; c) New Providence Acquisition with space-based cellular broadband network developer AST SpaceMobile; d) Thunder Bridge Acquisition II with automotive semiconductor maker indie Semiconductor; e) Experience Investment with helicopter taxi company Blade Urban Mobility and f) Big Rock Partners Acquisition

Select IPOX® Indexes Price Returns (%) Last Week 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 2.57 27.93 66.67
IPOX® International (IPXI)* (USD) (ETF : FPXI) 3.23 31.37 66.07
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 4.15 29.60 52.06
IPOX® ESG (IPXT) (USD) 3.63 45.84
IPOX® SPAC Index (SPAC) (USD) 1.74
IPOX® EV Index (IPEV) (USD) 4.08
IPOX® Indexes: Europe/Nordic
IPOX® 100 Europe (IPOE)* (USD) (ETF: FPXE) 3.20 30.97 33.71
IPOX® Nordic Core (IPND) (EUR) 3.37 38.52 55.18
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 2.80 4.41 46.53
IPOX® China Core (CNI) (USD) 2.23 26.31 74.90
IPOX® Japan (IPJP)** (JPY) 2.11 7.91 24.14

* 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 (IPOZ0). Source: Bloomberg

with COVID-19 and bipolar depression treatment developer NeuroRx. 2) 4 SPAC Completed Business Combination include: Social Capital Hedosophia II with real estate platform Opendoor (OPEN); b) Schultze Special Purpose Acquisition with cannabis company Clever Leaves International (CLVR); c) Opes Acquisition with hamburger chain BurgerFi (BFI); and d) Flying Eagle Acquisition with mobile games platform Skillz (SKLZ). 3) 1 Deals reportedly in talks include: a) digital media firm BuzzFeed. 4) 12 new SPACs IPO’d.

IPO Deal-flow Review and Outlook: At least 27 firms IPO’d across the global markets last week, with the average (median) equally- weighted deal adding a massive +94.56% (+17.76%) based on the final offer price and respective close. The last two U.S. unicorn IPOs of this year traded mixed: While e-commerce parent ContextLogic (WISH US: -1.87%) showed little strength from the worst debut for U.S. offers exceeding $1 billion YTD, lending platform Upstart (UPST US: +120.45%) soared and Chinese online food products retailer Wunong Net Technology (WNW US: +1459.60%) recorded a more than 15-fold jump. Gains extended to stocks traded abroad, including Chinese liquid detergent maker Blue Moon (6993 HK: +7.14%), Japans toaster maker Balmuda (6612 JP: +172.02%) and e-commerce data analysis startup Plaid (4165 JP: +129.38%). The global IPO market is set to quiet down ahead of Christmas with only IPOs across Asia-Pacific in focus. Other IPO news include: 1) cryptocurrency exchange Coinbase, software company UiPath, dating app Bumble, casino-theme game developer Playtika, and online thrift shop Poshmark filed for U.S. IPOs; 2) SoftBank-backed Indonesia’s largest e-commerce platform Tokopedia weighs dual listing IPO plan; 3) gaming platform Roblox, fintech payment company Affirm postponed their U.S. IPO plans.

Track global deal flow live on:

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