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.

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“content”) are 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 or contracts. 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. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services or commentary provided by any of the market commentators/educators or service providers and any information used to execute any trading strategies are solely based on the independent analysis of the user.

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