Investor flock to IPOX® Strategies exposure in 2020. Amid the unprecedented global economic crises inflicted by COVID-19 driving a jump in equity risk (VIX: +65.09% Y/Y 2020) and further declines in (global) bond yields, the IPOX® Strategies gained as investors flocked to equities mostly untracked in the benchmarks and seemingly insulated or even benefiting from the economic vows. Gains were broad-based and extended across global regions. In the U.S. e.g., the FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) rose +47.32% in 2020, outperforming the S&P 500 (SPX) by a massive +3104 bps., its best relative jump in strategy history. Here, gains across specialty exposure drove the good showing, including software makers 2019 IPO CrowdStrike (CRWD US: +324.74%), 2017 IPO Appian (APPN US: +324.21%) and social networker 2017
IPOX® 100 U.S. Investing with the “FPX” ETF since launch:
IPO Snap (SNAP US: +206.61%). Solid earnings across portfolio holdings and corporate M&A continued to support, with IPOX in many cases on the winning end of respective M&A takeover targets, including biotech MyoKardia (MYOK US: +208.58%) and social networker direct listing Slack Technologies (WORK US: +72.75%). Laggards in the IPOX 100 U.S. (ETF: FPX), some of which have exited the portfolio during the year, included economically sensitive exposure, including real estate services providers 2017 IPO Newmark Group (NMRK US: -44.91%) and 2018 IPO Cushman & Wakefield (CWK US: -27.45%). Strong gains extended to non-U.S. domiciled exposure tracked in the IPOX International ETF (FPXI), one of the fastest growing and most unique (in terms of factor exposure) ETFs in the marketplace. Here, the portfolio added +72.15% in 2020, a massive +6697 bps. above its benchmark. Gains across a unique group of mostly large-cap centric group of companies drove returns, including Asia-Pacific-linked ecommerce platform operators Singapore-based 2017 IPO Sea (SE US: +394.90%) and China’s 2018 IPO Pinduoduo (PDD US: +369.78%), Chinese biotech 2017 IPO Wuxi Biologics (2269 HK: +212.62%) and fast-growing phone maker 2017 Xiaomi (1810 HK: +2017.98%), just 4.78% of the size of U.S. iPhone maker Apple
|Select IPOX® Indexes Price Returns (%)||2019||Q4 2020||2020|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||27.93||19.36||66.63|
|IPOX® International (IPXI)* (USD) (ETF : FPXI)||31.37||22.23||72.15|
|IPOX® Indexes: United States|
|IPOX® Composite U.S. (IPXC) (USD)>||17.38||40.77|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||29.60||22.49||47.32|
|IPOX® ESG (IPXT) (USD)||–||14.03||42.29|
|IPOX® SPAC Index (SPAC) (USD)||–||30.43||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE)* (EUR) (ETF: FPXE)||34.55||12.63||36.96|
|IPOX® Nordic Core (IPND) (EUR)||38.52||17.12||59.87|
|IPOX® 100 Europe (IPOE)* (USD) (ETF: FPXE)||30.97||17.49||35.02|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||4.41||12.33||47.46|
|IPOX® China Core (CNI) (USD)||26.31||27.85||88.04|
|IPOX® Japan (IPJP)** (JPY)||7.91||7.90||25.75|
* 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 L.P.
Official IPOX® ETFs 2020 Returns: IPOX® 100 U.S. (ETF: FPX): +47.89%, IPOX® International (ETF: FPXI): +71.50%, IPOX® 100 Europe (ETF: FPXE): +34.99%.
AAPL: +82.32%). Amid decreasing valuation discounts and M&A, European payment processors produced solid returns, including “FPXI” heavyweight payment processors Adyen (ADYEN US: +160.60%) and Nexi (NEXI IM: +31.99%). The strategy mitigated bigger losses by exiting its position in Chinese-coffee Chain Luckin Coffee (LK: US: -78.40%) quickly, which also did not derail a big year
IPOX® International Investing with the “FPXI” ETF since launch:
for the diversified IPOX China (CNI) which rose +88.04% in 2020, even outpacing the newly launched and super-hot Hang Seng Tech Index (HTECH). Amid record IPOX AUM growth during 2020, we note the launch of several new IPOX Strategies in 2020, including the IPOX SPAC®, benchmark for U.S. SPAC performance. The portfolio ended 2020 with a gain of +30.43% from its July 31 launch, outperforming the benchmarks.
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