The IPOX® Week, July 5th, 2021

  • IPOX® Indexes trade mixed; IPOX® 100 U.S. (ETF: FPX) gains, China records losses.
  • Growth-focused IPOX® Europe (ETF: FPXE) outperforms benchmark by +108 bps. on week.
  • IPOX® SPAC (SPAC) struggles with U.S. small caps. IPOX® Alternative Energy surges.
  • Global IPOs hit the market at fastest pace since 1999. Focus on deals outside the U.S.

WEEKLY Summary: Global equity market traded mixed. While robust U.S. employment numbers, lower risk (VIX US: -5.04%), subdued U.S. rates and earnings optimism continued to propel the Derivatives-heavy U.S. large- and mega-cap benchmarks (S&P 500, Nasdaq 100) into uncharted territory, renewed COVID-19 variant concerns and regulatory overhang around China-linked exposure pressured markets abroad. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +0.28% to +7.78% YTD, leading U.S. small caps, however, trailing the S&P 500 (SPX) and U.S. technology stocks. Sentiment abroad was mixed as well: While renewed declines in China-domiciled equities and a strong U.S. dollar pressured the IPOX® International (ETF: FPXI), gains in select European growth stocks propelled the IPOX® Europe (ETF: FPXE), which outperformed the European market by +108 bps.

European Growth Investing with THE “FPXE” ETF:

Amongst IPOX® Sectors, we note the big week for the IPOX® Alternative Energy (IPEV) – a set of companies driving the future of automotive, computing and energy IPOX®-Style. The portfolio added +3.50% to +10.62%, while the IPOX® Japan (IPJP) added +0.35% to +7.14%, another weekly all-time high.

IPOX® Holdings:  As a result of the absence of earnings news, there was little divergence in individual IPOX® Portfolio Holdings returns.  Notable outliers included several European-domiciled holdings tracked in the IPOX® Europe (ETF: FPXE) such as construction services provider Instalco (INSTAL SS: +10.55%), sports helmet maker MIPS (MIPS SS: +8.81%), water transportation services provider Cadeler (CADLR NO: +8.21%), mass merchant Europris (EPR NO: +7.52%), wireless telecom provider IPO M&A Tele2 (TEL2B SS: +4.31%) and payments processor Adyen (ADYEN NA: +3.77%). In other non-U.S. domiciled IPOX® exposure, we note s good week in South Korean e-commerce platform operator Coupang (CPNG US: +8.18%), recently added Thai industrial SCG Packaging PCL (SCGP TB: +7.34%) and Brazil’s Petrobras Distribuidora (BRDT3 BZ: +6.55%), while U.S. Direct Listings application software maker Asana (ASAN US: +7.06%) and crypto exchange operator Coinbase (COIN US: +7.21%) rose strongly. AppTech AppLovin (APP US: -15.07%), software maker Palantir (PLTR US: -9.62#) and Chinese ecommerce platform Meituan (3690 HK: -7.88%) ranked towards the bottom.

Select IPOX® Indexes Price Returns 2020 Last Week YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 -0.52 3.33
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 -1.20 -1.28
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 0.28 7.78
IPOX® ESG (IPXT) (USD) 42.29 0.72 9.80
IPOX® SPAC (SPAC) (USD) 48.52 -0.70 -2.68
IPOX® Alternative Energy (IPEV) (USD) 3.50 10.62
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 -0.10 4.35
IPOX® Nordic Core (IPND) (EUR) 59.89 2.21 15.33
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 -1.49 0.90
IPOX® China Core (CNI) (USD) 88.02 -1.79 -6.87
IPOX® Japan (IPJP) (JPY) 25.75 0.35 7.14

* 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 -0.70% to -2.68% YTD and +44.55% since its 7/30/2020 launch. SPAC news include (select): 1) 5 SPACs Announced Merger Agreements (partial): a) Isos with bowling alley operator Bowlero; and b) Trebia Acquisition with marketing platform System1. 2) 9 SPACs Approved Business Combinations (partial): a) Foley Trasimene with Blackstone owned workforce, payroll and employee benefits management provider Alight Solutions (ALIT: 7/6); b) Climate Change Crisis Real Impact I with EV fast charging network EVgo (EVGO); c) Falcon Capital with health and wellness engagement platform Sharecare (SHCR) and d) Apex Technology with Microsoft 365 data management vendor AvePoint (AVPT). 3) SPAC reportedly in talks (partial): a) DHC Acquisition with EV charging startup FreeWire. 4) 13 new SPACs launched last week in the U.S.

weekly GLOBAL Deal-flow Review and Outlook:  36 IPOs debuted with the average (median) IPO adding +44.70% (+11.70%) based on the final offering price and respective Friday’s close.
The largest deals belonged to Ride-hailing giant DiDi (DIDI US: +10.93%), Spanish renewable energy spin-off Acciona Energy (ANE SM: +9.61%), cybersecurity firm SentinelOne (S US: +27.40%) and Australia’s online property exchange platform PEXA (PXA AU: +2.74%) . Chinese hip-pop promoter Pop Culture Group (CPOP US: +790.00%) ranked as the best performing IPO, while Chinese milk tea chain Nayuki (2150 HK: -15.86%) flopped. Amid the shortened U.S. trading week, focus is on deals abroad, including Hong Kong’s home-coming secondary offering Chinese EV XPeng (9868 HK) and biotech Keymed Biosciences (2162 HK). Other IPO news include: a) trading platform Robinhood revealed its IPO filing; b) German car part retailer Autodoc, Ant-backed Korean fintech unicorn Kakao Pay, British private equity firm Bridgepoint plan IPOs and agrochemicals behemoth Syngenta set for IPO.

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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