The IPOX® Week, October 18th, 2021

  • IPOX® Indexes surge and outpace benchmarks. IPOX® 100 U.S. ETF (ETF: FPX) adds +3.22%.
  • IPOX® Europe (ETF: FPXE) propels IPOX® International (ETF: FPXI).
  • IPOX® SPAC adds +0.64%. 10 new SPACs launched in the U.S. last week.
  • Mixed showings of large IPOs. Chicago-based Portillo’s and Enfusion lined up.

WEEKLY Summary:  Monthly U.S. Option expiration week and a big sentiment swing in the derivatives-heavy global equity benchmarks amid a strong start to U.S. earnings season left most IPOX® Indexes on top of the weekly global equity indexes performance rankings. Top of the list ranked the IPOX® 100 Europe (ETF: FPXE) which added +4.05% to +9.20% YTD, +127 bps. ahead of the European market last week. In the U.S., the IPOX® 100 U.S. (ETF: FPX), which provides semi-active, FANG-free exposure to broad U.S. innovation themes, added +3.22% to +9.79% YTD, +140 bps. ahead of the S&P 500 (ETF: SPY), benchmark for U.S. stocks. Relative gains extended to non-U.S. domiciled firms tracked

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

in the IPOX® International (ETF: FPXI): Helped by a weaker U.S. Dollar and a rally in select small-caps after big earnings, the portfolio added +3.87% to -4.70% YTD. We also note another strong week for the mega-cap tilted and highly liquid IPOX® GINDEX™ (GNDX), benchmark for IPO M&A. The strategy rose for a third week, adding +2.10% last week.

IPOX® Portfolio Holdings ireview: Rakuten-backed U.S. lending platform operator Upstart (UPST: +25.31%), an IPOX® 100 U.S. (ETF: FPX) portfolio holding, led the list of best performing firms within our universe. This was followed by Australian online wealth management platform operator Netwealth Group (NWL AU: +24.76%) and Israel-based medical devices maker Inmode (INMD US: +18.15%), both members of the IPOX® International (ETF: FPXI). European firms driving some of the strong showing in the IPOX® 100 Europe (ETF: FPXE) included Sweden’s biotech Olink (OLNK US: +18.61%), Swiss semiconductor maker Sensirion (SENS SE: +18.02%) and British biotech Bicycle Therapeutics (BCYC US: +12.40%). Little weighted Norway-based communications platform operator Pexip (PEXIP NO: -26.85%) and British online retailer THG (THG LN: -36.09%) ranked at the bottom.

IPOX® SPAC INDEX (SPAC):  The index added +0.65% to -10.32% YTD and +32.20% since its 7/30/2020 launch. SPAC news include: 1) 4 SPACs Announced Merger Agreement include: a) 26 Capital Acquisition with Philippine casino resort Okada Manila and b) Redball Acquisition with ticket marketplace SeatGeek. 2) 5 SPACs Approved Business Combinations  include: a) VPC Impact  Acquisitions with  digital assets marketplace Bakkt (BKKT: 10/18); b) Horizon Acquisition with online ticket marketplace Vivid Seats (SEAT: 10/19) and c) Legato Merger with steel producer Algoma Steel (ASTL: 10/18). 3) SPACs reportedly in talks include a) Benessere Capital Acquisition with hydrogen fuel maker ECombustible and b) Provident Acquisition with fintech Hyphen Group4) Spring Valley Acquisition terminated merger with indoor farming firm AeroFarms5) 10 new SPACs launched in the U.S. last week.

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 3.25 -0.43
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 3.87 -4.70
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 3.22 9.79
IPOX® GINDEX (GNDX) (USD) n/a 2.10 n/a
IPOX® ESG (IPXT) (USD) 42.29 3.82 12.37
EnIPOX® SPAC (SPAC) (USD) 48.52 0.64 -10.32
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 4.05 9.20
IPOX® Nordic Core (IPND) (EUR) 59.89 6.34 20.86
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 3.68 -1.87
IPOX® China Core (CNI) (USD) 88.02 1.25 -31.35
IPOX® Japan (IPJP) (JPY) 25.75 3.63 11.56

* 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 16 firms commenced trading with the average equally weighted company adding just +2.78% based on the difference between the respective final offering price and Friday’s close. Larger IPOs traded notably mixed during the volatile week for global equities: While U.S. domiciled coding platform operator Gitlab (GTLB US: +49.35%) surged after pricing above-range and renewable energy plants developer ACWA Power International (ACWA AB: +18.75%) rose on the largest IPO in Saudi Arabia since blue chip oil behemoth IPOX® International (ETF: FPXI) holding Aramco (ARAMCO AB: +0.40%), Bain and Mastercard-backed account payable automation software AvidXchange (AVDX US: -6.56%) and medical devices maker PHC (6534 JP: -17.23%), the largest IPO In Japan since Softbank (9434 JP:  +0.73%), finished the week well below their final offering price, respectively. Companies lined up to go public during the upcoming week include Chicago-based high-end burger chain operator Portillo’s (PTLO US) and fintech unicorn application software maker Enfusion (ENFN US). Non-Chicago deals include coconut water brand Vita Coco (COCO US) and Norway’s innovative robotic firm AutoStore (AUTO NO). Amid the big divergence in post-IPO returns, European IPOs lined up include CVC-owned Italian gaming company Sisal, Bridgepoint-backed Burger King UK, Advent-backed industrial parts supplier Rubix, fitness apparel retailer Gymshark and Netherlands-based bitcoin miner Bitfury.

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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