The IPOX® Week, November 29th, 2021

  • IPOX® Indexes fall for second week as fresh Covid variant fears emerge, risk jumps.
  • IPOX® 100 U.S. Index declines by -4.89%. Drop extends to all markets abroad.
  • IPOX® SPAC (SPAC) follows weakness in equities. 6 new SPACs launched in the U.S.
  • IPO market set to cool with no significantly sized IPOs lined up.

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.

Lightspeed Financial Services Group LLC is not affiliated with these third-party market commentators/educators or service providers. Data, information, and material (“content”) are 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 or contracts. 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. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services or commentary provided by any of the market commentators/educators or service providers and any information used to execute any trading strategies are solely based on the independent analysis of the user.

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