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.
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