Weekly Summary: Soaring U.S. equity risk (VIX: +59.80%), falling U.S. yields and a stable U.S. Dollar amid re-emerging Covid variant fears pressured the IPOX® Indexes during the shortened U.S. trading week. In the U.S., e.g., the IPOX® 100 U.S. Index (ETF: FPX) sank -4.89% to +6.72% YTD, broadly in line with U.S. small caps, however, lagging the S&P 500 Index (ETF: SPY), key gauge for the performance of U.S. large caps. Declines extended to markets abroad such as the IPOX® International Index (ETF: FPXI) and IPOX® Europe Index (ETF: FPXE). Across Asia-Pacific, further selling in China-linked exposure left the IPOX® China Index to close the week at a one-year low, while the IPOX® Japan Index pulled back from its recent run to test its July all-time High.
IPOX® 100 U.S. (IPXO) Investing with the “FPX” ETF since Launch:
IPOX® Portfolio Holdings in focus: Amid deleveraging, profit taking and end-of month position squaring in relatively unseasoned growth stocks tracked in IPOX® U.S.-domiciled companies recording big downside included software makers Asana (ASAN US: -22.72%), DigitalOcean (DOCN US: -22.03%), SentinelOne (S US: -18.02%) and Zoom Video (ZM US: -12.37%). Losses extended to sectors other than software with firms such as Chicago’s health care services provider Oak Street Health (OSH US: -15.30%), food delivery platform operator DoorDash (DASH US: -12.70%) or biotech Intellia Therapeutics (NTLA US: -12.63%) under big pressure. Across the list of non-U.S. domiciled IPOX® Portfolio Holdings, firms including Russia’s recruitment services provider HeadHunter Group (HHR US: -16.60%), Financial Services provider AllFunds Group (ALLFG NA: -13.24%) and Swedish wealth tech Nordnet (SAVE SS: -11.43%) recorded significant declines. German Covid vaccine maker BioNTech (BNTX US: +20.10%), biotechs Polypeptide (PPGN SE: +11.84%) and Maravai LifeSciences (MRVI US: +10.76%), Japanese information services provider JMDC (4483 JP: +7.19%), retailer PE-backed Albertsons Group (ACI US: +5.77%) and U.S. computer hardware maker Dell Technologies (DELL US: +2.11%) bucked the weakness.
|Select IPOX® Indexes Price Returns||2020||Last Week||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||-4.71||-3.10|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||-4.41||-10.19|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||-4.89||6.72|
|IPOX® M&A (GNDX) (USD)||n/a||-1.44||n/a|
|IPOX® ESG (IPXT) (USD)||42.29||-3.73||7.41|
|IPOX® SPAC (SPAC) (USD)||48.52||-3.10||-8.91|
|IPOX® EV (IPEV) (USD)||n/a||-2.96||37.28|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||-4.77||7.57|
|IPOX® Nordic Core (IPND) (EUR)||59.89||-8.62||16.81|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||-3.62||-1.79|
|IPOX® China Core (CNI) (USD)||88.02||-4.40||-35.40|
|IPOX® Japan (IPJP) (JPY)||25.75||-2.62||13.68|
* 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).
IPOX® SPAC INDEX (SPAC): The Index declined by -3.10% to -8.91% YTD and +35.30% since its 07/30/2020 launch. SPAC news include: 1) 2 SPACs Announced Merger Agreement include: a) Benessere Capital Acquisition (BENE US: +4.22%) with hydrogen fuel supplier eCombustible and b) Bright Lights Acquisition (BLTS US: +1.02) with men’s grooming products maker MANSCAPED. 2) No SPACs Approved Business Combinations. 3) Yunhong International (ZGYH US) liquidated due to its inability to complete a business combination in time. 4) SPACs reportedly in talks include Adit EdTech Acquisition (ADEX US: +1.85%) with bitcoin minter Griid and Atlantic Coastal Acquisition (ACAH US: +0.31%) with 3D printing solutions provider Essentium. 5) 6 new SPACs launched in the United States last week
WEEKLY GLOBAL Deal-flow Review and Outlook: 15 IPOs launched globally last week, with the average equally weighted deal adding +48.11% based on the difference between the respective final offering price and Friday’s close. Indonesia’s state-owned telecom tower and infrastructure construction firm Mitratel (MTEL IJ: -3.75%), Indonesia’s third largest deal in history, had a disappointing debut. In Europe, Italy’s largest IPO since COVID, heating solutions group Ariston (ARIS IM: +0..00%) traded flat in Milan. Amid little IPO deal flow in the U.S. last week, micro-cap air filtering devices maker AeroClean (AERC US: +710.00%) skyrocketed. No significantly sized IPOs are set for the upcoming week. Other IPO news include a) Chinese rideshare company Didi Global (DIDI US: -5.06%) set to delist due to Chinese regulatory request; b) Authentic Brands to push back IPO plan amid new PE cash injection; c) Longfor weighs property management unit IPO on the Hong Kong Stock Exchange.
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