Weekly Summary: Amid stable U.S. yields, higher risk (VIX: +9.94%) and another week of big gains for the U.S. dollar, the IPOX® Indexes finished monthly U.S. options expiration week mixed. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) shed -1.62% to +12.21% YTD, tracking U.S. small-caps lower, while more declines across China- and Brazil-linked exposure and adverse currency moves continued to pressure the IPOX International (ETF: FPXI). Driven by big gains in some key portfolio holdings, we note another strong week for the IPOX® Europe (IPOEE), underlying for the UCITS-conform “EFPX” ETF and 5-star NASDAQ-listed “FPXE” ETF with the Europe-traded version extending the lead vs. the broad European market to a strong +798 bps. since its June launch.
IPOX® Europe (IPOEE) Investing with the “EFPX” ETF since Launch:
More explosive gains across a diversified mix of EV-makers and respective best-of-breed platform stocks propelled the narrower and super-liquid IPOX® EV Index (IPEV) by a massive +3.91% to +41.47% YTD.
IPOX® Portfolio Holdings in focus: Europe-domiciled stocks tracked in the IPOX® Europe (IPOEE) stood out and included German Covid-19 vaccine maker BioNTech (BNTX US: +21.67%), Swedish application software firm CINT Group (CINT SS: +11.26%), IPOX® heavyweight medical equipment maker Siemens Healthineers (SHL GY: +10.82%) and German online food-services provider HelloFresh (HFG GY: +10.52%). China, Brazil, and Canada-domiciled firms continued to lag with Canadian payment solutions provider Lightspeed Commerce (LSPD US: -21.66%), China key real estate services provider Country Garden Services (6098 HK: -14.22%) and Brazil-domiciled payment processor PagSeguro Digital (PAGS US: -15.78%) and pet store operator Pet Center Commercio (PETZ3 BS: -11.02%) pressuring the respective IPOX® Indexes.
IPOX® SPAC INDEX (SPAC): The Index fell -0.16% to -5.99% YTD and +39.63% since Its 7/30/2020 launch. SPAC news include: 1) 5 SPACs Announced Merger Agreement include: a) Blue Safari Group Acquisition (BSGA US: +3.61%) with Singapore-based bitcoin mining firm Bitdeer, b) Archimedes Tech SPAC Partners (ATSPT US: +0.81%) with voice recognition company SoundHound and c) Waldencast Acquisition Co. (WALD US: +1.74%) with two cosmetic and skincare companies OBAGI and Milk Makeup; 2) 4 SPACs Approved Business Combinations include: a) Virtuoso Acquisition with car data marketplace Wejo (WEJO: +13.01%) and b) Leo Holdings III (LIII US: -4.65%) with indoor agriculture company Local Bounti (LOCL: 11/22); 3) 1 SPACs terminated merger agreement include Khosla Venture (KVSA US: +0.30%) with drug discovery biotech Valo Health. 4) SPACs Reportedly In talk Include 10X Capital (VCXA US: +5.62%) with bitcoin miner PrimeBlock; 5) 12 new SPACs launched last week in the U.S.
|Select IPOX® Indexes Price Returns||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-0.81||1.69|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||-1.17||-6.04|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-1.62||12.21|
|IPOX® M&A (GNDX) (USD)||n/a||-0.94||n/a|
|IPOX® ESG (IPXT) (USD)||42.29||-1.94||11.57|
|IPOX® SPAC (SPAC) (USD)||48.52||-0.16||-5.99|
|IPOX® EV (IPEV) (USD)||n/a||3.91||41.47|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||0.68||12.96|
|IPOX® Nordic Core (IPND) (EUR)||59.89||0.00||27.83|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||0.45||1.89|
|IPOX® China Core (CNI) (USD)||88.02||-2.53||32.43|
|IPOX® Japan (IPJP) (JPY)||25.75||0.57||16.75|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOZ1). *also available In UCITS format in Europe in EUR (EFPX IM,), USD (IPXE LN), and GBP (FPX LN).
WEEKLY GLOBAL Deal-flow Review and Outlook: 17 IPOs launched globally last week, with the average equally-weighted deal adding +17.82% based on the difference between the respective final offering price and Friday’s close. U.S. salad chain Sweetgreen (SG US: +89.29%), German solar EV maker Sono (SEV US: +65.33%) and customer engagement platform Braze (BRZE US: +44.86%) surged in their debut in the U.S. Abroad, property and casualty insurer Definity Financial (formerly known as Economical Mutual Insurance) (DFY CN: +24.55%) rose on the largest Canadian IPO YTD, while Indian key digital payments firm Paytm (PAYTM IN: -27.00%), India’s largest IPO in history, plunged on its debut. Russia’s second-largest bourse SPB Exchange (SPBE RM: +9.59%) also rose in its debut in Moscow. The IPO market is set for a slowdown amid U.S. Thanksgiving week, with no significant deal flow seen in the U.S. Abroad, Indonesia state-owned Telkom Indonesia’s subsidiary tower operator Dayamitra Telekomunikasi/Mitratel (MTEL IJ) is expected to launch the countries third largest IPO in history. Other IPO news include: a) Greek yogurt maker Chobani, IoT firm Samsara, Brazilian steakhouse chain Fogo de Chao (re-IPO) filed; b) NetEase’s music unit spin-off Cloud Village revived $1B Hong Kong IPO plan and c) Chinese AI giant SenseTime close to $1B Hong Kong offer.
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