The IPOX® Week, July 26th, 2021

  • IPOX® 100 U.S. (ETF FPX) leads U.S. equity indexes rankings with +6.60% gain.
  • Strong earnings and massive corporate actions reasons behind the big rally in IPOX®.
  • IPOX® SPAC (SPAC) struggles anew, drops for fourth week.
  • Historic IPO wave continues as deals are well received. Low-float Robinhood lined up.

WEEKLY Summary: Big earnings and massive corporate actions activity propelled select IPOX® Indexes. Most upside was recorded by the IPOX® 100 U.S. (ETF: FPX) which traded as the best performing diversified U.S. equity index, adding +6.60% to +8.54% YTD, significantly ahead of the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Big strength extended to markets abroad with the IPOX® 100 Europe (ETF: FPXE) closing out the week at a fresh all-high high and settling above the key 2000 level for the first time. Despite the plunge in China-linked stocks on more regulatory overhang and seemingly foreign repatriation selling benefiting the large-cap Developed Markets benchmarks most, the big week for Europe-linked exposure was enough to push the IPOX® International (ETF: FPXI) into positive territory, adding +0.59% to -1.93% YTD and outperforming its benchmark.

IPOX® 100 U.S Investing with the “FPX” ETF since 2006

IPOX® portfolio hodlings in focuS:  With global earnings season in full swing and massive corporate actions underpinning strength, the dispersion of returns amongst individual IPOX® portfolio holdings diverged sharply.   Untracked in the key benchmarks due to its unconventional voting structure, for example, IPOX® heavyweight U.S. social networker Snap (SNAP US:  +31.46%) ranked amongst the best performing IPOX® portfolio holdings. Other companies which surged included Europe-domiciled deals such as German Covid-19 vaccine maker BioNTech (BNTX US:  +21.81%), Swedish private equity firm EQT (EQT SS: +19.73%), Brazil’s payment processor PagSeguro (PAGS US:  +12.97%), U.S. social networker Pinterest (PINS US:  +11.90%) or U.S. high-end outdoor/recreational goods maker Yeti (YETI US:   +11.16%).   In IPOX® corporate actions, we note Friday’s massive bid for Swedish automotive technology provider Spin-off U.S.-traded Veoneer (VNE US: +58.22%), a portfolio holding in the IPOX® 100 Europe (ETF: FPXE). Amid the shortened trading week in Japan and regulatory actions impacting China-domiciled stocks, IPOX® portfolio holdings domiciled across Asia-Pacific traded broadly lower, such as real estate services providers Sunac Services (1516 HK) and Country Garden Services (6098 HK: -8.29%), biotech companies Wuxi Biologics (2269 HK: -7.29%) and Pharmaron Beijing (3759 HK: -6.80%), as well as mobile phone maker Xiaomi (1810 HK: -6.73%).

Select IPOX® Indexes Price Returns 2020 Last Week YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 3.10 3.08
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 0.59 -1.93
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 6.60 8.54
IPOX® ESG (IPXT) (USD) 42.29 6.87 11.69
IPOX® SPAC (SPAC) (USD) 48.52 -0.18 -6.06
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 4.02 8.87
IPOX® Nordic Core (IPND) (EUR) 59.89 5.84 25.28
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 -1.21 -0.23
IPOX® China Core (CNI) (USD) 88.02 -5.88 -17.22
IPOX® Japan (IPJP) (JPY) 25.75 -0.14 6.64

* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).

IPOX® SPAC INDEX (SPAC):   The Index fell -0.18% to -6.06% YTD and +39.54% since its 7/30/2020 launch. SPAC news include: 1) 8 SPACs Announced Merger Agreements: a) Dragoneer Growth Opportunities II with Cvent; b) Power & Digital Infrastructure with Core Scientific and c) Investindustrial Acquisition with Zegna. 2) 10 SPACs Approved Business Combinations include: a) Churchill Capital IV with Lucid Motors (LCID: 7/26); b) CM Life Sciences with Sema4 and c) Gores Holding VI with Matterport (MTTR). 3) SPACs reportedly in talks etc.: a) Supernova Partners Acquisition with restaurant data platform Buyers Edge Platform; b) Pershing Square Tontine revoked 10% Universal Music Group acquisition. 4) 5 new SPACs launched last week.

Weekly GLOBAL Deal-flow Review and Outlook:  39 IPOs debuted globally with the average equally-weighted deal adding +10.32%. Most IPOs debuted strongly, including drug development platform Absci (ABSI US: +43.06%), database firm Couchbase (BASE US: +41.63%), London-based private equity group Bridgepoint (BPT LN: +38.29%) and specialty insurance group Ryan Specialty (RYAN US: +21.66%). More IPOs scheduled toward month-end include the most anticipated offer of the year, trading platform, low-float Robinhood (HOOD US), language learning app Duolingo (DUOL US), food and vegetable producer Dole (DOLE US), Altice ad-tech spin-off Teads (TEAD US) and Brookfield’s automotive battery maker Clarios (BTRY US). Other IPO news: a) Asian-fusion restaurant P.F. Chang, crypto exchange Binance US, Warburg Pincus-backed AI drug discovery Insilico Medicine mull IPO; b) Asia-Pacific sees multiple upcoming billion-dollar IPOs including Indonesia e-commerce giant Bukalapak (BUKA IJ: 8/6), South Korea digital lender KakaoBank (323410 KS: 8/6), video game developer Krafton (259960 KS: 8/10) and payment service provider Kakao Pay (377300 KS: 8/17). Zomato (ZOMATO IN: +65.79%) becomes largest tech IPO in India’s history and largest Indian IPO YTD.

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