The IPOX® Week, June 22, 2020

  • IPOX Indexes soar as gains in the New Generation of equities tracked with IPOX accelerate during expiration week.
  • IPOX 100 U.S. (ETF: FPX) adds +4.82% to +3.36% YTD. IPOX International (ETF: FPXI) jumps +7.15% to +25.69% YTD. IPOX 100 Europe (ETF: FPXE) rises +4.87% to +6.55% YTD.
  • Amid big demand for IPOs, Albertsons (ACI US) lined up.

IPOX Indexes soar as gains in the New Generation of equities tracked with IPOX accelerate during expiration week. The broad-based, diversified IPOX Indexes soared during U.S. Futures & Options expiration week. Drivers of the strong absolute and relative showing included 1) Amid Covid-19 risk overhang, a quiet U.S. (and global) rates market with equity risk trading in a narrow range (VIX: -2.69%) 2) Continued broad-based asset allocation into equities representing the New Generation, often left out or underweight in the main benchmarks. We also note deteriorating U.S. equity sentiment into the week-end after the CME-traded NASDAQ June Futures (NQM0) settlement price closed near its all-time high, after soaring into expiration ahead of last Friday’s U.S. equities opening.

IPOX International Investing with the “FPXI” ETF since 2015:

IPOX 100 U.S. (ETF: FPX) adds +4.82% to +3.36% YTD. IPOX International (ETF: FPXI) jumps +7.15% to +25.69% YTD. IPOX 100 Europe (ETF: FPXE) rises +4.87% to +6.55% YTD. Big gains across the IPOX Indexes range characterized last week’s IPOX performance. In the U.S., e.g., the broad-based, FANG-free diversified IPOX 100 U.S. (IPXO) – underlying for the $1.5 billion “FPX” ETF – rose +4.82% to +3.36% YTD, extending the YTD lead vs. the S&P 500 (SPX) and Russell 2000 (RTY) to +748 bps. and +1833 bps., respectively. Big strength also extended to the IPOX International (IPXI), tracked by the $120 million “FPXI” ETF: In one of its best weeks ever, the strategy rose +7.15% last week, extending its YTD relative return lead vs. the MSCI World excluding U.S. (MXWOU) to +3736 bps. YTD, a new record and underlying the asset allocation benefits of adding IPOX to conventional benchmark exposure for large-scale semi-passive asset allocation purposes. Amid the pick-up in European IPO activity, we also note the continued strength in the IPOX 100 Europe (ETF: FPXE): Led by more strong gains in its exposure to stocks domiciled in Europe’s Nordic region, the unique, well-diversified, and broad-based European Growth Index rose +4.87% to +6.55% YTD to a fresh all-time high, +1726 bps. YTD ahead of the European market as measured by the STOXX Europe 50 Price Index (SX5L).

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 6.48 27.93 21.75
IPOX® International (IPXI)* (USD) (ETF: FPXI) 7.15 31.37 25.69
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC) (USD) 5.25 24.65 7.81
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 4.82 29.60 3.36
IPOX® ESG (IPXT) (USD) 3.72
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 5.03 34.55 17.24
IPOX® Nordic (IPND) 6.89 38.52 19.65
IPOX® 100 Europe (IPOE)* (USD) 4.87 30.97 6.55
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 3.53 4.41 15.64
IPOX® China (CNI) (USD) 6.85 26.31 29.01
IPOX® Japan (IPJP)** (JPY) 1.97 37.91 -1.37

* 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]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):
GSX TECHEDU (FPXI) 34.32 HAPAG-LLOYD (FPXE) -17.48
SPOTIFY (FPX) 28.44 ZEALAND PHARMA (FPXE) -11.11
CLOUDFLARE (FPX) 24.91 SELECTQUOTE (FPX) -6.52
BILIBILI (FPXI) 24.67 SEMPRA ENERGY (FPX) -5.48
1 LIFE HEALTHCARE (FPX) 21.18 FREEE KK (FPXI) -5.25
PINDUODUO (FPXI) 19.79 ARVINAS (FPX) -4.72
ETSY (FPX) 19.60 MIPS (FPXE) -4.57
SINCH (FPXE) 19.36 EQUITABLE (FPX) -4.47
ROKU (FPX) 18.90 SHURGARD (FPXE) -3.88
AVALARA (FPX) 17.46 FDJ (FPXE) -3.00
LIVONGO HEALTH (FPX) 17.38 BIOGEN (FPX) -2.96
SAMHALLSBYG. (FPXE) 17.20 LEVI STRAUSS (FPX) -2.90

IPO Deal-flow Review and Outlook: Health Care IPOs continue to rise on sector momentum. Grocery chain Albertsons lined up for IPO. At least 8 IPOs commenced trading across the global regions last week with the average (median) equally-weighted deal adding +54.91% (+37.86%) based on the difference between the final offering price and their respective Friday’s close. Pharmaceutical royalties acquirer Royalty Pharma (RPRX US: +75.00%) soared as the largest U.S. IPO YTD. Other biotech IPOs continued to debut strongly. Abroad, Italian mask and filter maker GVS (GVS IM: +21.72%), Germany’s OTC chemical free drug maker PharmaSGP (PSG GR:+11.11%) as well as Philippine’s first IPO YTD, grocer MerryMart (MM PM: +195.00%), all debuted strongly. This week, PE-backed grocery giant Albertsons (ACI US) kicks off its $1.3 billion IPO in the U.S., while Japan sees its first IPO since March with local discount information provider Locoguide (4497 JP) lined up to debut. Other IPO news include: 1) The largest and oldest mutual bank in U.S., Boston-based Eastern Bank, prepares to go public 2) German vaccine developer CureVac initiates IPO 3) Turkish bus operator Metro Turizm plans to list in Istanbul 4) Restaurant operator Yum China follows U.S. listed Chinese companies Alibaba, JD.com and NetEase to file $2 billion Hong Kong listing confidentially.

Lime Brokerage LLC is not affiliated with these service providers. Data, information, and material (“content”) is 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. 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. Lime Brokerage LLC does not endorse, offer or recommend any of the services nor information provided by any of the above service providers and any service or information used to execute any trading strategies are solely based on the independent analysis of the user.

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