The IPOX® Week, July 13, 2020

  • IPOX Indexes continue broad-based rally. IPOX 100 U.S. (ETF: FPX) closes week at highest level on record.
  • IPOX 100 U.S. (ETF: FPX) adds +3.64% to +10.20% YTD. IPOX International (ETF: FPXI) rises +3.40% to +35.56% YTD. IPOX 100 Europe (ETF: FPXE) gains +1.70% to +12.81% YTD.
  • “Hot” IPO market: Big initial openings characterize the week’s IPOs in the U.S. and Hong Kong.

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.

Lime Brokerage LLC is not affiliated with these service providers. Data, information, and material (“content”) is 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. 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. Lime Brokerage LLC does not endorse, offer or recommend any of the services nor information provided by any of the above service providers and any service or information used to execute any trading strategies are solely based on the independent analysis of the user.

You may also be interested in...

Why European Investors Interested In US ETFs Are Turning To US Brokers
Read More
The IPOX® Week, August 3rd, 2020
Read More
The Tech Trade Cools Off With Earnings On Deck
Read More
The IPOX® Week, July 27, 2020
Read More

Try the demo

Compare Platforms
Check the background of this firm on FINRA's BrokerCheck

Our website uses cookies to improve the performance of our site, to analyze the traffic to our site, and to personalize your experience of the site. You can control cookies through your browser settings. Please find more information on the cookies used on our site in our Privacy Policy. By clicking OK, you agree to allow us to collect information through cookies.

OK