Everything IPOX records big returns during May as investors flock to the New Generation of stocks. Amid stable U.S. yields, lower equity risk (VIX: -2.31%), geo-political jitters, declining global anxiety over Covid-19 and the S&P 500 (SPX) zooming through big technical resistance, IPOX finished May with another strong showing, with multiple Indexes closing out the month at or near all-time highs. In the U.S., e.g., the FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumped +3.28% last week to gain +11.26% during May, a massive +673 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. The IPOX 100 U.S. (ETF: FPX) also finished out the month by recording its first positive YTD close since Feb. 26, 2020, as late-day positioning amid previously delayed index rebalancing’s propelled IPOX holdings which are typically underrepresented in the benchmarks. 88% of portfolio constituents rose during May, with the equally-weighted average (median) stock adding a massive +13.96% (+11.52%), ahead of the applied market-cap weighted IPOX 100 U.S. (ETF: FPX) and underlying the big strength in small- and mid-cap specialty exposure in light of a good month for the Russell 2000 (RTY), which gained +6.36% to -16.45% YTD.
Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high. Strong IPOX momentum continued to extend to firms domiciled outside the U.S. with the diversified IPOX International (ETF: FPXI) adding +3.35% to +14.33% YTD, its 8th consecutive weekly gain, and up +10.69% for May. All global regions represented in the portfolio drove returns, including China (CNI), Developed Asia-Pacific (IPTA), Europe (IXTE, IPND) and Japan (IPJP). Gains were broad-based across market-cap spectrum and industries, led by Asia-Pacific key tech plays Sea (SE US: +43.58%), Meituan Dianping (3690 HK: +41.33%), Pinduoduo (PDD US: +40.96%), Freee KK (4478 JP: +39.29%) and Mercari (4385 JP: +18.32%), followed by specialty exposure linked to diverse other industries including Danish drug maker Genmab (GMAB US: +25.24%), Brazil Financial XP (XP US: +20.67%) and leading global energy plays Orsted (ORSTED DC: +14.29%) and Saudi Arabian Oil (ARAMCO AB: +4.27%).
IPOX International ETF (FPXI)-Investing since 11/2015
|Long-only IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||12.23||27.93||12.79|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||10.69||31.37||14.33|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||11.26||29.60||0.38|
|IPOX® ESG (IPXT) (USD)||7.13||–||–|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||11.99||34.55||15.03|
|IPOX® Nordic (IPND)||15.29||38.52||14.71|
|IPOX® 100 Europe (IPOE)* (USD)||9.52||30.97||3.02|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||10.67||4.41||9.23|
|IPOX® China (CNI) (USD)||7.79||26.31||14.52|
|IPOX® Japan (IPJP)** (JPY)||13.00||37.91||-3.10|
* 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 (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]
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|MYOKARDIA (FPX)||62.83||ARVINAS (FPX)||-36.63|
|LIVONGO HEALTH (FPX)||49.79||HAPAG-LLOYD (FPXE)||-34.07|
|ARGENX (FPXE)||49.70||COUNTRYSIDE (FPXE)||-28.23|
|APPFOLIO (FPX)||44.28||GSX TECHEDU (FPXI)||-20.73|
|SEA (FPXI)||43.58||AIB GROUP (FPXE)||-20.08|
|REDFIN (FPX)||41.93||KOOLEARN TECH. (FPXI)||-16.84|
|MEITUAN DIANPING (FPXI)||41.33||CHINA FEIHE (FPXI)||-13.37|
|PINDUODUO (FPXI)||40.96||COOR SERVICE (FPXE)||-10.08|
|FREEE KK (FPXI)||39.29||ROKU (FPX)||-9.67|
|KINSALE CAPITAL (FPX)||37.47||GILEAD SCIENCES (FPX)||-7.35|
IPO Deal-flow Review and Outlook: JDE Peet’s surges in Amsterdam $2.4 billion debut. ZoomInfo lined up. With no U.S. IPOs taking place during the shortened U.S. trading week, focus was on deals in Europe with JAB’s coffee empire JDE Peet’s (JDEP NA: +13.78%) and German analytic database management firm Exasol (EXL GR: +35.58%) debuting strongly. With the global IPO window now open, the world’s third-largest record label Warner Music Group (WMG US), business-intelligence platform ZoomInfo Technologies (ZI US), fibrosis biopharma Pliant Therapeutics (PLRX US) and J&J-backed GenScript cell therapy unit spin-off Legend Biotech (LEGN US) are scheduled to list in the U.S. this week, while Tencent-backed payment platform Yeahka (9923 HK) is set to launch with over 600x oversubscription in Hong Kong. Other IPO news include: 1) Brookfield-backed WeWork rival Industrious poised for IPO; 2) Germany OTC drug maker PharmaSGP plans Frankfurt listing; 3) U.S.-listed NetEase and JD.com to list in Hong Kong in upcoming weeks; 4) multiple biotechs added to the U.S. pipeline including Avidity Biosciences Generation Bio, Progenity and Vaxcyte.
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