IPOX Indexes continue broad-based rally. IPOX 100 U.S. (ETF: FPX) closes week at highest level on record. The IPOX Indexes surged last week as: 1) Momentum buying continued to press technology and select consumer/health care stocks into uncharted territory amid the continued historical divergence in equity indexes spreads ahead of U.S equity option expiration week (NDX: +4.78%, RTY: -0.64%), 2) Falling U.S. yields amid Covid-19 anxiety provided further support to equity risk (VIX: -2.03%). Momentum in the IPOX Indexes, however, slowed into the week-end as investors took profits in some recently well-performing portfolio holdings. In the U.S., e.g., the FANG-free and broad-based $1.4 billion IPOX-100 U.S.-linked “FPX” ETF, the world’s largest IPO-focused ETF, added +3.64% to +10.20% YTD, extending its YTD lead vs. the S&P 500 (SPX) by +188 bps. to a large +1162 bps. Here, 62/100 firms rose, with the average (median) equally-weighted IPOX 100 U.S. portfolio holding adding +2.61% (+1.03%), significantly underperforming the
FPX: World’s largest U.S. IPO-focused ETF sets All-time High
Chart: IPO asset allocation with the “FPX” ETF since fund launch in 2006.
index. Big momentum also drove the diversified IPOX International, underlying for the $153 million “FPXI” ETF, to a fresh weekly all-time high, adding +3.40% to +35.56% YTD, a massive +4673 bps. ahead of the MSCI World (ex. U.S.) (MXWOU Index) YTD. In the IPOX 100 U.S., firms including biotechs Livongo Health (LVGO US: +45.14%) and Principa Biopharma (PRNB US: +14.34%), social networker Snap (SNAP US: +9.95%) and recreational vehicle distributer Camping World (CWH US: +8.98%) stood out, while phone maker H.K.-traded Xiaomi (1810 HK: +18.37%) and property servicing firm Country Garden Services (6098 HK: +14.09%), Brazils IPO M&A multichannel retailer Magazin Luiza (MGLU3 BS: +11.36%), and Riyadh-traded Dr. Sulaiman Al Habib Medical Services Group (SULAIMAN AB: +6.91%) recorded notable gains in the IPOX International. Firms including U.S. real estate website firm Redfin (RFIN US: -11.47%) and Germany’s online food ordering platform operator Delivery Hero (DHER GY) ranked amongst the worst performing IPOX portfolio holdings on the week.
|Select IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||4.13||27.93||31.67|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||3.40||31.37||35.56|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||3.64||29.60||10.20|
|IPOX® ESG (IPXT) (USD)||3.42||–||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||0.76||34.55||22.93|
|IPOX® Nordic (IPND)||1.45||38.52||30.67|
|IPOX® 100 Europe (IPOE)* (USD)||1.70||30.97||12.81|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||1.97||4.41||16.75|
|IPOX® China (CNI) (USD)||6.64||26.31||44.32|
|IPOX® Japan (IPJP)** (JPY)||3.00||37.91||0.69|
* 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 (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]
IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
|LIVONGO HEALTH INC||45.14||ADC THERAPEUTICS SA||-14.99|
|TESLA INC||27.80||KARUNA THERAPEUTICS||-12.17|
|XIAOMI CORP||18.37||REDFIN CORP||-11.47|
|CARDLYTICS INC||17.29||JOHN LAING GROUP PLC||-9.31|
|ALIBABA GROUP HOLDING||16.73||ASCENDIS PHARMA A/S||-9.29|
|EVER SUNSHINE LIFESTYLE||16.02||HEADHUNTER GROUP P||-9.16|
|PRINCIPIA BIOPHARMA INC||14.34||VIELA BIO INC||-9.01|
|COUNTRY GARDEN SERV.||14.09||VARTA AG||-8.35|
|ZSCALER INC||13.86||SAFEHOLD INC||-7.37|
|FARFETCH LTD||12.39||DELIVERY HERO SE||-7.32|
IPO Deal-flow Review and Outlook: E-cigarette maker Smoore doubles on largest deal of the week in Hong Kong. Busy week for IPOs ahead. At least 13 sizable IPOs commenced trading across the global regions last week, with the average (median) equally-weighted deal adding +59.53% (+39.13%) based on the difference between the final offering price and their respective market’s close. Pre-clinical biopharmaceutical company Nkarta (NKTX US: +166.11%) almost tripled, while Chinese LGBTQ dating app BlueCity (BLCT US: +53.13%) also rose strongly on debut. H.K. had the busiest week YTD with e-cigarette vaping device maker Smoore (6969 HK: +150.00%) and 1896x oversubscribed ophthalmic company Ocumension (1477 HK: +152.39%) recording big initial returns. Lined up for this week in the U.S. are Financial software developer nCino (NCNO US) and Chicago-based health insurance marketplace GoHealth (GOCO US), while H.K. is set for another busy week with H.K.’s largest IPO YTD, China Bohai Bank (9668 HK) lined up. Other IPO news include: 1) Data analytics titan Palantir, U.S. largest mortgage lender Rocket Companies (Quicken Loans) and egg & butter producer Vital Farms filed for IPO 2) Cryptocurrency trading platform Coinbase, Apollo-backed Rackspace prepares for listing 3) SoftBank backed Chinese real estate brokerage Beike Zhaofang, Goldman Sachs-backed payment card issuer Marqeta eyes U.S. IPO 4) Brazilian energy and infrastructure group Cosan considers to spin off its sugar and fuel distribution units Raizen Combutiveis and Raizen Energia in IPO, Brazilian mobile network operator Surf plans U.S. listing 5) French pharmaceutical giant Sanofi proceeds with its $2B+ active ingredient unit IPO 6) Postmates IPO off the table with Uber’s $2.65B takeover in place.
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