The IPOX® Week, July 29, 2019

  • Solid earnings drive select IPOX Indexes to strong week. IPOX 100 U.S. (ETF: FPX) closes at fresh All-Time High.
  • IPOX-held China Tobacco (6055 HK) adds another +24.09%.
  • IPO Deal-flow Review & Outlook: Healthtech startups Health Catalyst (HCAT US) and Livongo (LVGO US) record strong initial returns. IRONMAN owner Wanda Sports (WSG US) flops. Global IPO market set to build on strong Momentum.

Solid earnings drive select IPOX Indexes to strong week. IPOX 100 U.S. (ETF: FPX) closes at fresh All-Time High.  Amid stable U.S. yields, solid U.S. earnings and falling risk (VIX: -15.99%) ahead of FED week, select IPOX Indexes finished the week on another high note, with the FANG-free, diversified IPOX 100 U.S. (ETF: FPX) – benchmark for the performance of U.S. New Listings – adding +2.20% to +30.88% YTD, outperforming most U.S. equities anew and extending the YTD lead vs. the S&P 500 (SPX) – benchmark for U.S. stocks – by +55 bps. to a massive +1015 bps. YTD.

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

Amid earnings in full swing, strength was again driven by big upside in mid-sized specialty firms such as online advertising platform operator The Trade Desk (TTD US: +18.35%), car vendor Carvana (CVNA US: +14.75%) or social networker Twitter (TWTR US: +14.75%). Ejected from the main U.S. benchmark due to its corporate governance structure, we note the big week for IPOX 100 U.S. (ETF: FPX)-held social networker Snap (SNAP US: +27.60%), while abroad IPOX International (ETF: FPXI)-held Chinese state tobacco monopoly China Tobacco International (6055 HK: +24.09%) continued its meteoric rise since its 06/2019 IPO. Mute earnings in IPOX heavyweight payment processor PayPal (PYPL US: -2.65%), Spin-off chemicals maker Dow (DOW US: -4.68%), alternative energy firm Sunrun (RUN US: -5.06%) or consumer staple Turning Point Brands (TPB US: -21.83%) weighed on respective IPOX Indexes performance towards the week-end.

IPOX-linked Funds Update: The IPOX 100 U.S.-linked, 5-star (10-years) $1.3 billion First Trust U.S. Equity Opportunities ETF (FPX US) climbed to +31.50% YTD, a record high, while the IPOX International (IPXI)-linked 5-star (3-years) First Trust International Equity Opportunities ETF (FPXI US) and the IPOX® 100 Europe-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE US) closed at +25.41% YTD and +25.79% YTD. IPOX-linked award-winning mutual fund Catalyst IPOX® Allocation Fund (OIPAX US) added to +28.27% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 1.50 -11.37 27.50
IPOX® International (IPXI)* (USD) 0.73 -13.47 23.07
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* 1.75 -7.59 22.00
IPOX® 100 U.S. (IPXO)* 2.20 -8.80 30.88
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.37 -13.46 25.30
IPOX® Nordic (IPND) 1.36 -15.45 25.87
IPOX® 100 Europe (IPOE)* (USD) 0.13 -16.60 22.48
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.96 -3.21 7.06
IPOX® China (CNI) (USD) -0.72 -22.83 13.04
IPOX® Japan (IPJP)** (JPY) 0.53 -13.70 0.04

* 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 (IPOU9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: Healthtech startups Health Catalyst (HCAT US) and Livongo (LVGO US) record strong initial returns. IRONMAN owner Wanda Sports (WSG US) flops. Global IPO Market set to build on strong Momentum. At least 8 firms debuted last week in markets open to global investors, with the average (median) equal-weighted stock adding +13.33% (+10.65%) based on the difference between the final IPO price and Friday’s close. Strong momentum for U.S. IPOs continued unabated with healthcare x tech unicorns Health Catalyst (HCAT US: +47.31%) and Livongo (LVGO US: +36.14%) surging on above-range debut, while Goldman Sachs-backed specialty P&C insurer ProSight (PROS US: +17.21%) rose on its downsized, below range deal. Weak demand continued for Chinese IPOs as sports events media and marketing spin-off Wanda Sports (WSG US: -35.50%) struggled to raise less than half of its target, tanking on its downsized, below range offer. Strong global deal flow is set to continue with revolving sushi restaurant Kura Sushi (KURA US), software firm Dynatrace (DT US), Canadian cannabis producer Sundial Growers (SNDL US) set to launch in the U.S. Abroad, we note deals including Pro-Wrestling’s parent company – Bushiroad (7803 JP) and Italian health & wellness e-tailer Farmaè (FAR IM).

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