The IPOX® Week, May 27

  • IPOX 100 Europe (ETF: FPXE) shines amid deadlock on trade.
  • FANG-free IPOX 100 U.S. (ETF: FPX) resilient; outperforms U.S. benchmarks for 3rd
  • IPO Deal-flow Review & Outlook: Merck acquires cancer drug developer Peloton Therapeutics for up to $2.2 billion ahead of IPO. Amid shortened U.S. trading week, focus on deals in H.K

IPOX Europe (ETF: FPXE) shines amid deadlock on trade; FANG-free IPOX 100 U.S. (ETF: FPX) resilient; outperforms U.S. benchmarks for 3rd week. The key IPOX Indexes once again proved resilient to the deadlock on global trade and the big slump in U.S. rates inflicting heavy damage on the broad equity benchmarks across global regions. Most notable was an outstanding week for the IPOX 100 Europe (ETF: FPXE), which added +0.25% to +16.08% YTD last week, while most European benchmarks fell. Further, in the U.S., the FANG-free IPOX 100 U.S. (ETF: FPX) fared once again better than when compared to the harder-hit-benchmarks, including the Nasdaq 100 (NDX: -2.70%) or Russell 2000 (RTY: -1.41%), declining by -1.08% to +20.77% YTD, now +804 bps. ahead of the S&P 500 (SPX: -1.17%), benchmark for U.S. equities. Stocks with most notable upside included IPOX Europe 100 (ETF: FPXE) heavyweight IPO M&A drug maker Novartis (NVS US: +5.83%), internet browser maker Nasdaq-traded Oslo-based Opera (OPRA US: +11.65%), Danish alternative energy play Orsted (ORSTED DC: +8.36%) or U.S. consumer-focused exposure including internet media play Roku (ROKU US:+13.98%) or car sharing firm Lyft (LYFT US: +6.15%). Adverse trade news and insider selling pressured exposure including ecommerce platform operator Pinduoduo (PDD US: -10.66%), infrastructure play China Tower (788 HK: -10.64%) or car vendor Carvana (CVNA US: -12.83%).

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

IPOX-linked Fund Performance: The IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.2 billion First Trust U.S. Equity Opportunities ETF (FPX) fell to +21.11% 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 +13.73% YTD and +19.12% YTD, respectively. Amongst actively managed IPOX-linked funds, the Catalyst IPOX® Allocation Fund (OIPIX) – a 2019 Thomson Lipper Award Winner – declined to +19.86% YTD.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -1.09 -11.37 17.20
IPOX® International (IPXI)* (USD) -0.43 -13.41 12.12
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* -0.80 -7.59 14.96
IPOX® 100 U.S. (IPXO)* -1.08 -8.80 20.77
IPOX® 30 U.S. (IPXT) -0.39 -10.28 16.83
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 0.26 -13.46 18.97
IPOX® Nordic (IPND) 0.79 -15.45 19.22
IPOX® 100 Europe (IPOE)* (USD) 0.25 -16.60 16.08
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 0.64 -3.21 2.32
IPOX® China (CNI) (USD) -3.50 -22.83 3.34
IPOX® Japan (IPJP)** (JPY) -1.11 -13.70 0.51

* 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: Merck acquires cancer drug developer Peloton Therapeutics for up to $2.2 billion ahead of IPO. Amid shortened U.S. trading week, focus on deals in H.K.  At least 4 firms debuted last week, with the average (median) equally weighted stock decreasing -8.35% (-6.28%) based on the difference between the final offering price and Friday’s close. While Merck (MRK US: +3.16%) acquired cancer drug developer Peloton Therapeutics for up to $2.2 billion ahead of its planned IPO, Nobel Laureate founded UK-based biotech Bicycle Therapeutics (BCYC US: -6.79%) debuted poorly and Celgene, Novartis-backed cancer-focused biotech IDEAYA (IDYA US: +12.50%) finished above final offer. Abroad, Saudi Arabia’s largest IPO since 2015, shopping mall operator Arabian Centres (ALMRAKEZ AB: -5.77%) fell based on final offer. Amid the shortened U.S. trading week with no U.S. IPOs set to commence trading, deals in H.K are set to take center stage, including spin-off solar plant operator Xinyi Energy (3868 HK) and contract research organization (CRO) Frontage (1521 HK). We note more IPO talk from KKR-backed UK train and bus tickets booking app Trainline, German logistics property company Garbe Industrial Real Estate, Apollo-owned Swiss luxury watch retailer Watches of Switzerland and Chinese English language training (ELT) provider Meten (MEDU US), while Big Data unicorn Palantir reportedly postponed its long-waited IPO to 2020.

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



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