The IPOX® Week, June 3, 2019

  • IPOX Indexes extend big YTD gains versus markets as trade war drives more selling in the broad-based benchmarks.
  • ETFs in focus: FPX, FPXI and FPXE.
  • IPO Deal-flow Review & Outlook: Luxury watch retailer Watches of Switzerland (WOSG LN) jumped on debut. Online fashion unicorn Revolve (RVLV US) ready to launch, valued at $1.2 billion.

IPOX Indexes gain versus markets as trade war drives more selling in the broad-based benchmarks. For a 4th week, the key IPOX Indexes outperformed as the escalation of the trade war to U.S.-Mexico drove more big selling in the widely traded benchmarks towards the week-end. Most notable was another outstanding week for the super-liquid IPOX Global (IPGL50), IPOX Europe (ETF: FPXE) and IPOX Nordic (IPND) which extended their YTD lead vs. the benchmarks to +802 bps., +700 bps. and +1222 bps., respectively.  Further, in the U.S., the IPOX 100 U.S. (ETF: FPX) fared once again better than when compared to the harder-hit-benchmarks, including the Nasdaq 100 (NDX: -2.36%) or Russell 2000 (RTY: -3.21%), declining by -2.09% to +18.25% YTD, now +847 bps. YTD ahead of the S&P 500 (SPX: -2.62%), benchmark for U.S. stocks. Most notable weekly upside included IPOX 100 U.S. (ETF: FPX) holdings application software makers Anaplan (PLAN US: +17.75%) and Okta (OKTA US: +3.27%), as well as IPOX Europe (ETF: FPXE) holdings container shipping line operator Hapag-Lloyd (HLAG GY: +16.90%),  refiner Vivo Energy (VVO LN: +13.29%) and Japan-traded printing services provider Raksul (4384 JP: +21.57%). Weak earnings (forecasts) pressured hardware makers New Listing Dell Tech (DELL US: -9.94%) and Hewlett Packard Enterprise (HPE US: -4.66%), as well as Australian-based fund services provider IPTA-held Link Admin (LNK AT: -22.47%).

IPOX 100 U.S.-Style Investing with the “FPX” ETF since 2006.

IPOX-linked Fund Performance: As trade tension deepened, the IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.1 billion First Trust U.S. Equity Opportunities ETF (FPX) fell to +18.61% YTD, while the IPOX International (IPXI)-linked 4-star (3-years) First Trust International Equity Opportunities ETF (FPXI) and IPOX 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) closed the week at +12.67% YTD and +17.19% YTD, respectively. Amongst actively managed IPOX-linked funds, the Catalyst IPOX® Allocation Fund (OIPIX) – a 2019 Thomson Lipper Award Winner – fell to +19.08% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -1.00 -11.37 16.02
IPOX® International (IPXI)* (USD) -0.75 -13.41 11.28
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* -2.89 -7.59 11.65
IPOX® 100 U.S. (IPXO)* -2.09 -8.80 18.25
IPOX® 30 U.S. (IPXT) -2.12 -10.28 14.35
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -0.66 -13.46 18.18
IPOX® Nordic (IPND) -0.57 -15.45 18.54
IPOX® 100 Europe (IPOE)* (USD) -1.38 -16.60 14.47
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.54 -3.21 1.58
IPOX® China (CNI) (USD) 1.15 -22.83 3.93
IPOX® Japan (IPJP)** (JPY) -0.28 -13.70 0.79

* 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 (IPOM9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: Luxury watch retailer Watches of Switzerland (WOSG LN) jumped on London debut. Online fashion unicorn Revolve (RVLV US) ready to launch, valued at $1.2 billion.  At least 7 firms debuted last week, with the average (median) equally weighted stock adding +4.28% (+2.81%) based on the difference between the final offering price and Friday’s close. Amid the shortened trading week, no U.S. IPOs commenced trading. Abroad, luxury timepiece retailer Watches of Switzerland (WOSG LN: +14.07%) and enterprise software provider Essensys (ESYS LN: +20.86%) surged in their London debut. Hong Kong shares traded mixed for the week with the 2nd largest local listing this year, solar power spin-off Xinyi Energy (3868 HK: 0.00%), closing flat, while clinical research organization Frontage (1521 HK: +2.81%) gained on strong demand. This week, the U.S. IPO market is back on track with millennial and Gen-Z focused online fashion retailer Revolve (RVLV US) lined up to go public.

May IPO Recap: At least 44 firms debuted during the month of May, raising approx. $17.9 billion and adding an average of 11.20% on first close across accessible markets*. IPOs in the U.S. led the way with 25 firms, booking over $14.5 billion in proceeds. Runner-up Hong Kong welcomed 10 listings, but bagged less than 1/10 of the cash when compared to the U.S. While Uber’s (UBER US: -10.47%) lackluster IPO continues to stay in spotlight, LA-based vegan-meat maker Beyond Meat (BYND US: +316.48%) has outshined every mega player in the IPO tournament so far. Other interesting offers included Starbucks’ Chinese rival Luckin Coffee (LK US: +18.24%), Dubai’s  largest deal in 4 years, shopping mall operator Arabian Centre (ALMRAKEZ AB: -11.62%), UAE-based payment and foreign exchange company Finablr (FIN LN: -6.86%), Russian recruitment platform HeadHunter (HHR US: +27.85%) and Malaysia’s poultry giant Leong Hup International (LHIB MK: -5.45%).
*restriction applies

Track Priced & Upcoming IPOs on https://ipox.com

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