IPOX Indexes start 2020 with gains. IPOX 100 U.S. (ETF: FPX) unaffected by early-year weakness in U.S. small- and mid-caps. Amid higher risk (VIX: +1.74% YTD) and falling U.S. yields on increased geopolitical tensions into the week-end, the IPOX Indexes started the New Year with gains. Significant upside was recorded by the broad, large-cap centric IPOX International (ETF: FPXI) which gained to +1.46% YTD, and extending the three-year
3-year Investing with the IPOX® International ETF (FPXI)
unadjusted relative performance jump vs. the ultra-cheap benchmarks to a massive ca. +3181 bps. Specifically, the portfolio benefited from continued strength in China-linked exposure (CNI: +1.90%) which rose strongly on optimism about China central bank policy seeking to further stimulate economic growth, the positive prospects for Chinese technology stocks and strength in select Brazil-traded health care related stocks. Individual IPOX International (ETF: FPXI) Portfolio holdings to highlight include Brazil-traded managed health care services providers Hapvida Participacoes (HAPV3 BZ: +8.37%) and Notre Dame Intermedica Participacoes (GNDI3 BZ: +6.96%), as well as the slew of China-linked technology, consumer and health-care linked exposure tracked in the portfolio such as US-traded e-commerce platform operator Pinduoduo (PDD US: +8.12%), educational software maker GSX Techedu (GSX US: +7.18%), “hot pot” restaurant operator Hong Kong-traded Haidilao International (6862 HK: +5.75%) and biotech Wuxi Biologics (2269 HK: +2.99%). We also note a strong start into the New Year by Madrid-traded telecom Tower operator Cellnex Telecom (CLNX SM: +5.03%) which gained after announcing the purchase of infrastructure assets across Portugal from its joint venture including telecom Altice Europe (ATC NA: +3.17%) and investment bank Morgan Stanley (MS US: +0.16%). Profit taking across a number of portfolio holdings including Copenhagen-traded leading windfarm operator Orsted (ORSTED DC: -1.68%) capped upside towards the week-end. In the U.S., the IPOX 100 U.S. (ETF: FPX) rose to +0.32% YTD, outperforming the S&P 500 (SPX: +0.13%), Russell 2000 (RTY: -0.46%) and S&P Mid-Cap (MID: -0.36%), while lagging U.S. technology stocks (NDX: +0.70%). Here, 52/100 portfolio holdings rose on the week, with the average (median) equally-weighted firm adding +0.49% (+0.15%). Software makers ranked amongst the best performing portfolio holdings, including Coupa Software (COUP US: +9.11%) and Avalara (AVLR US: +7.66%), while IPO M&A, S&P 500 (SPX) inclusion candidate electric car maker Tesla (TSLA US: +5.90%) and IL-based French fries maker Spin-off Lamb Weston (LW US: +8.75%) extended recent gains after business updates.
|Select IPOX® Indexes Price Returns (%)||2018||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||-11.37||27.93||1.07|
|IPOX® International (IPXI)* (USD)||-13.41||31.37||0.97|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD)||-8.80||29.60||0.32|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||-13.46||34.55||0.57|
|IPOX® Nordic (IPND)||-15.45||38.52||0.50|
|IPOX® 100 Europe (IPOE)* (USD)||-16.60||30.97||0.12|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||-3.21||4.41||0.27|
|IPOX® China (CNI) (USD)||-22.83||26.31||1.90|
|IPOX® Japan (IPJP)** (JPY)||-13.70||7.91||0.00|
* 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 (IPOH0). Source: Bloomberg.
IPOX ETFs 2020 YTD Returns: IPOX 100 U.S. (ETF: FPX): +0.46%, IPOX International (ETF: FPXI): +1.46%, IPOX 100 Europe (ETF: FPXE): -0.11%.
13-year Investing with the IPOX® 100 U.S. ETF (FPX)
No U.S. IPOs lined up, focus on deals across Asia-Pacific. With no IPOs expected to list in the U.S. and Europe, firms set to list across Asia-Pacific include H.K.-traded micro-caps engineering and construction services provider Kwan Yong (9998 HK) and electronic components maker Wise Ally International (9918 HK), as well as Jakarta-listed Financial Bank Amar Indonesia (AMAR IJ).
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