The IPOX® Week, December 28th, 2020

  • IPOX® Indexes trade mixed. China & Europe/Nordic lead IPOX® International (ETF: FPXI) to fresh all-time high, dodges big decline in shares of Alibaba (BABA US: -14.62%).
  • IPOX® SPAC (SPAC) surges +6.31% during last full week of 2020 trading, outpacing all benchmarks.
  • The IPOX® Team wishes you a happy, healthy and prosperous New Year 2021!

IPOX® Indexes trade mixed last week. Following U.S. Futures & Options expiration, the IPOX Indexes traded mixed. In the U.S., for example, the IPOX 100 U.S., underlying for the $2 billion “FPX” ETF, shed -0.02% to +52.03% YTD, slightly ahead of the S&P 500 and Nasdaq 100, benchmarks for U.S. stocks last week. Abroad, the IPOX International rose +0.96% to +67.67% YTD, while its benchmark declined by -0.55%. The underlying for the $1 billion “FPXI” ETF benefited from gains across several non-U.S. domiciled specialty stocks trading across Asia, The Americas and Europe, and was unaffected by the big drop in hedge fund-heavy Chinese ecommerce platform operator Alibaba (BABA US: -14.62%), which the IPOX Portfolios, including the IPOX International and IPOX China, had recently exited. We also note a fresh all-time closing high in the IPOX 100 Europe (ETF: FPXE), Europe’s most unique growth index, composed of European domiciled New Listings trading across global trading venues. The portfolio added +0.45% to +34.10% YTD, outpacing its benchmarks by +155 bps. last week. Some of the recently added IPOX Portfolio Holdings led the list of best performers, including Canadian infrastructure software maker Lightspeed (LSPD CT: +18.90%), U.S. based online insurance seller Lemonade (LMND UN: +17.46%), specialty pharma maker Allovir (ALVR UW: +13.11%), China-based health care services provider JD Health (6618 HK: +11.22%), Dutch energy storage maker Alfen Beheer (ALFEN NA: +10.74%), Swedish wealth management platform Nordnet (SAVE SS: +7.84%) and German spin-off Siemens Energy (ENR GY: +6.78%). We note significant declines a number in Tokyo-traded portfolio holdings towards year-yead, such as software makers AI Inside (4488 JP: -8.94%) and Freee KK (4478 JT: -8.16%), logistics firm SG Holdings (9143 JT: -8.00%) and telecom value play Softbank (9434 JT: -4.42%).

Select IPOX® Indexes Price Returns (%) Last Week 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 0.14 27.93 66.90
IPOX® International (IPXI)* (USD) (ETF : FPXI) 0.96 31.37 67.67
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) -0.02 29.60 52.03
IPOX® ESG (IPXT) (USD) -0.30 45.41
IPOX® SPAC Index (SPAC) (USD) 6.31
IPOX® EV Index (IPEV) (USD) 0.72
IPOX® Indexes: Europe/Nordic
IPOX® 100 Europe (IPOE)* (USD) (ETF: FPXE) 0.45 30.97 34.10
IPOX® Nordic Core (IPND) (EUR) 1.01 38.52 56.75
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -1.61 4.41 44.09
IPOX® China Core (CNI) (USD) 2.47 26.31 79.21
IPOX® Japan (IPJP)** (JPY) -1.71 7.91 22.02

* 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 (IPOH1). Source: Bloomberg. Prices exclude dividends.

IPOX® SPAC Index (SPAC): The portfolio added +6.31% to +49.52% since its July 30 launch. SPAC news include 1) 3 SPACs Announced Merger Agreement/LOI include: a) Juniper Industrial with PE-backed windows and doors manufacturer Janus International; b) Colonnade Acquisition with lidar maker Ouster; and c) Deerfield Healthcare with senior healthcare providers CareMax Medical Group and IMC Medical Group. 2) 5 SPACs Completed Business Combination and Started Trading include: a) LifeSci Acquisition Corp with cancer drug developer Vincera (VINC); b) Pivotal Investment II with EV company XL Fleet (XL); c) PropTech Acquisition with home services platform Porch Group (PRCH); d) Monocle Acquisition with aviation aftermarket service company AerSale (ASLE); and e) Hennessy Capital Acquisition with EV manufacturer Canoo (GOEV). 3) 6 new SPACs IPO’d.

IPO Deal-flow Review and Outlook: At least 12 notable firms IPO’d last week, with the average (median) equally weighted deal adding +36.82% (+27.00%) based on the final offer price and respective close. While markets across the U.S. and Europe were quiet, the Asia-Pacific region lit up pre-Christmas with both Bangladesh Robi Axiata (ROBI BD: +50.00%), the 2nd largest mobile network operator and countries’ largest IPO in a decade, and Thailand’s largest private parcel-delivery firm, Kerry Express (KEX TB: +83.04%), surging in their respective debuts. Japanese wealth management platform WealthNavi (7342 JP: +119.04%) also soared. Global IPO activity winds down ahead of the New Year with only few listings lined up in H.K. Other IPO news include: 1) NYSE loosens IPO requirement to promote Direct Listings. 2) Chinese Quora, Q&A platform Zhihu plans to go public; 3) more talks on Elon Musk’s Starlink IPO.

Track global deal flow live 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.

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