WEEKLY Summary: Amid higher U.S. inflation driving a spike in U.S. equity risk (VIX: +14.03) and increasing COVID-19 variant fears, the IPOX® Indexes traded mixed during monthly options expiration week. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) slumped by -5.24% to +1.82% YTD, in line with U.S. small-caps and significantly lagging the S&P 500 (SPX), benchmark for U.S. stocks. Sentiment was better for non-U.S. domiciled exposure. Here, strong earnings amongst select holdings domiciled in Europe and more muted trading in China-linked stocks led the IPOX® International (ETF: FPXI) and IPOX® Europe (ETF: FPXE) to a winning week, adding +0.48% and +0.07% respectively, well ahead of the benchmarks. We also note another fresh weekly all-time high in the IPOX® Nordic (IPND), diversified and liquid proxy for innovation linked to Europe’s Nordic region.
IPOX® International (ETF: FPXI) and IPOX® europe (ETF: FPXE):
IPOX® Holdings: Companies leading the weekly performance ranking amongst IPOX® International (ETF: FPXI) portfolio holdings included Sweden’s application software maker, Softbank-backed Sinch (SINCH SS: +19.96%), Israel-based medical devices manufacturer InMode (INMD US +10.04%), Norway’s internet services provider Adevinta (ADE NO: +7.17%), Germany’s vaccine maker Biontech (BNTX US: +6.47%) and China’s mobile phone maker Xiaomi (1810 HK: +5.81%). In the IPOX® Europe (ETF: FPXE US, EFPX IM), firms with significant update included recent London-traded IPO cybersecurity firm Darktrace (DARK LN: +17.86%), while IPO M&A automotive retailer D’Ieteren Group (DIE BB: +19.91%) surged after a massive Hellman & Friedman-led private equity transaction linked to Belron, its vehicle-glass repair and replacement arm. Amid the sell-off in unseasoned U.S. small- and mid-sized growth stocks and ahead of key earnings, the breadth of losses in the IPOX® 100 U.S. (ETF: FPX) was broad with just 8/100 portfolio holdings recording a weekly gain. Here, while biotechs Biohaven Pharma (BHVN US: +7.06%) and C4 Therapeutics (CCCC US: +3.98%) rose on perceived takeover speculation, self-driving technology provider Tusimple (TSP US: -15.25%), health care services provider Accolade (ACCD US: -14.75%) and personal styling platform operator Stich Fix (SFIX US: -13.72%) fell most.
|Select IPOX® Indexes Price Returns||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-1.76||-0.02|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||0.48||-2.50|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-5.24||1.82|
|IPOX® ESG (IPXT) (USD)||42.29||-4.68||4.50|
|IPOX® SPAC (SPAC) (USD)||48.52||-2.49||-5.89|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||0.07||4.66|
|IPOX® Nordic Core (IPND) (EUR)||59.89||1.33||18.36|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||1.52||0.99|
|IPOX® China Core (CNI) (USD)||88.02||0.92||-12.05|
|IPOX® Japan (IPJP) (JPY)||25.75||1.04||6.79|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM), and GBP (FPX LN).
IPOX® SPAC INDEX (SPAC): The Index fell -2.49% to -5.89% YTD and +39.78% since its 7/30/2020 launch. SPAC news include: 1) 7 SPACs Announced Merger Agreements (select): a) Reinvent Technology Partners Y with Aurora; b) Lionheart Acquisition II with MSP Recovery and c) Longview Acquisition II with HeartFlow. 2) 9 SPACs Approved Business Combinations (select): a) Landcadia III with Hillman Group (HLMN); b) Aspirational Consumer Lifestyle with Wheels Up (UP US) and c) Decarbonization Plus Acquisition with Hyzon Motors (HYZN: 7/19). 3) SPACs reportedly in talks (partial): a) Velocity Acquisition with grill retailer BBQGuys; b) Artisan Acquisition with HK genetic testing startup Prenetics; c) Slam Corp with Italian sports trading cards maker Panini; and d) PWP Forward I with insurance comparison company Policygenius. 4) 8 new SPACs launched last week in the U.S.
Weekly GLOBAL Deal-flow Review and Outlook: 37 IPOs debuted with the average IPO adding +4.28%. Deals traded notably mixed, including COVID test company SD Biosensor (137310 KS: +17.31%), online medical platform Medlive Technology (2192 HK: +10.48%), satellite operator Al Yah (YAHSAT UH: -0.73%), drug containment maker Stevanato (STVN US: -6.33%), healthcare provider United Medical (GEMC RM: -0.11%), fitness chain F45 Training (FXLV US: +0.63%) and private member club operator Membership Collective (known as Soho House, MCG US: -10.71%). Despite the change of initial IPO sentiment, the IPO market shows few signs of a slowdown with at least two dozen IPOs scheduled including insurance provider Ryan Specialty (RYAN US) and HR software firm Paycor HCM (PYCR US). Other IPO news: a) Japan to privatize subway operator Tokyo Metro; b) online boutique Lulus, workout apparel company Fabletics, Cathie Wood-backed REIT VineBrook, PE owned private health care data analytics company Cotiviti, fitness center PureGym, Shell-Cosan joint venture Brazilian biofuel company Raizen mull listing; d) analytic startup Amplitude confidentially filed for direct listing.
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