WEEKLY Summary: Amid 1) higher U.S. long-term yields reflecting increasing inflationary expectations., 2) another good week for the U.S. dollar and 3) lower U.S. equity risk (VIX: -11.25%) ahead of monthly U.S. options expiration week and more U.S. earnings, the IPOX® Indexes traded mixed. Driven by big strength in some of its heavyweights, top of the list ranked the FANG-free IPOX® 100 U.S. (ETF: FPX), proxy for the performance of 100 of the largest and best-performing U.S. New Listings by applying the IPOX® Indexes Technology and multithematic yardstick for the most innovative U.S. companies as measured by the dynamic profile of U.S. deal flow. The Index gained +0.60% to +6.36% YTD, slightly shy of the S&P 500 (ETF: SPY), but well ahead of the Nasdaq 100 (ETF: QQQ) and Russell 2000 (ETF: IWM). Performance of
IPOX® 100 U.S Investing with the “FPX” ETF since 2006
non-U.S. deal flow was more muted with big weakness in select portfolio holdings and more Dollar strength weighing heavily. We note another excellent week in the IPOX® GINDEX™ (GNDX). The mega-cap tilted and highly liquid benchmark for IPO M&A added +1.62% last week, topping the weekly IPOX® Indexes performance rankings.
IPOX® Portfolio Holdings in review: The most notable upside move belonged to semiconductor maker IPO M&A Marvell Technologies (MRVL US: +8.01%). The top holding in the U.S.-focused $2.0 billion “FPX” ETF with a 9% weight surged after raising growth targets. Moreover, higher oil prices also propelled IPOX® International (ETF: FPXI) heavyweight Riyadh-traded oil behemoth Aramco (ARAMCO AB: +3.19%) to a fresh post IPO-high. Big IPOX® laggards included Brazil payment processor PagSeguro (PAGS US: -30.73%) and the slew of China-domiciled biotech’s Pharmaron (3759 HK: -13.37%), Cansino (6185 HK: -22.04%) and Wuxi Biologics (2269 HK: -11.46%).
IPOX® SPAC INDEX (SPAC): The Index fell -1.54% to -10.90% YTD and +32.35% since its 7/30/2020 launch. SPAC news include: 1) 4 SPACs Announced Merger Agreement include: a) FirstMark Horizon Acquisition with internet service provider Starry and b) Supernova Partners Acquisition II with quantum computing company Rigetti Computing. 2) 3 SPACs Approved Business Combinations include: a)
include: a) Industrial Tech Acquisitions with radar company Arbe Robotics (ARBE); b) LifeSci Acquisition II with clinical research software maker Science 37 (SNCE) and c) ACON S2 Acquisition with battery manufacturer ESS Tech (GWH: 10/11). 3) SPACs reportedly in talk include a) Dune Acquisition with online brokerage TradeZero and b) RedBall Acquisition with ticket marketplace SeatGeek. 4) 11 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||0.03||-3.56|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||-1.98||-8.26|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||0.60||6.36|
|IPOX® GINDEX™ (GNDX) (USD)||n/a||1.62||n/a|
|IPOX® ESG (IPXT) (USD)||42.29||-0.72||8.23|
|IPOX® SPAC (SPAC) (USD)||48.52||-1.54||-10.90|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||-0.25||4.95|
|IPOX® Nordic Core (IPND) (EUR)||59.89||-2.10||13.66|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||-3.50||-5,35|
|IPOX® China Core (CNI) (USD)||88.02||-0.52||-32.20|
|IPOX® Japan (IPJP) (JPY)||25.75||-4.00||7.66|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOZ1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).
GLOBAL Deal-flow Review and Outlook: At least 15 IPOs launched globally with the average equally weighted deal adding +6.96% based on the difference between the respective final offer price and Friday’s close. Oil giant ADNOC spin-off ADNOC Drilling (ADNOCDRI UH: +30.87%) soared on Abu Dhabi’s largest IPO. Swedish investment firm Storskogen (STORB SS: +4.99%) rose on this week’s largest offer. Canadian software developer Cooperleaf Technologies (CPLF CN: +63.63%) ranked the best performing IPO of the week. Highly-anticipate Peloton competitor NordicTrack maker iFit Health & Fitness, luxury watch retailer Chronext and French healthcare property group Icade Sante postponed scheduled IPO due to market volatility. Saudi Arabian ACWA Power, Swedish business intelligence provider Byggfakta Group, Japanese medial devices maker PHC (formerly Panasonic Healthcare), U.S. coding platform GitLab and London-based telecoms Infrastructure firm IHS among upcoming large IPOs this week. Other IPO news include a) chipmaker GlobalFoundries, online courses provider Udemy, personal finance startup NerdWallet, designer apparel e-commerce platform Rent the Runway, furniture retail chain Arhaus and more filed for U.S. IPO; b) Swedish car maker Volvo on track for Stockholm IPO and c) Italian oil and gas super-player Eni to spin-off gas and power retail and renewable energy unit.
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