The IPOX® Week, October 25th, 2021

  • IPOX® Indexes rise across the board. Weak Snap (SNAP US) dents sentiment.
  • IPOX® Europe ETF (FPXE US) celebrates 3-year anniversary, doubling benchmark returns.
  • A week for SPACs: Digital World Acquisition (DWAC US: +842.37%).
  • Autostore (AUTO NO) and Portillo’s (PTLO US) rise on debut. High-profile deals lined up.

WEEKLY Summary:  The IPOX® Indexes rose towards month-end, driven by momentum-buying into the broad-based benchmarks, lower equity risk (VIX: -5.34%) and more gains for China-linked stocks (CNI: +4.11%). Declines in U.S. social networker Snap (SNAP US: -28.70%) after reporting mixed quarterly numbers dented strong sentiment into the weekend. In the U.S., e.g., the IPOX 100 U.S. (FPX US) added +0.28% to +10.10% YTD, lagging the U.S. benchmarks. Non-U.S. domiciled exposure tracked in the IPOX® International (FPXI US) performed better when compared to the U.S. counterpart, adding +1.83% to -2.96% YTD. We note big strength in the IPOX® Europe (FPXE US). Driven by gains in select Nordic-domiciled portfolio holdings, the index added +2.98% to +12.46% YTD, +237 bps. ahead of the European market. In IPOX®-linked ETF product news, we are pleased to highlight the 3-year live anniversary of the NASDAQ-listed IPOX® Europe ETF (FPXE US). According to Bloomberg, the “FPXE” ETF has gained +71.64% since it’s October 2018 launch, a massive +3770 bps. ahead of the Vanguard FTSE Europe ETF (VGK US), key gauge for European stocks. In addition, companies pursuing IPO M&A pooled in the IPOX® Growth Infusion Index (GNDX) continued to outperform, adding +2.99% last week.

IPOX® Europe ETF (FPXE) doubles return of benchmarks since 2018

IPOX® Portfolio Holdings: Amid earnings, returns diverged sharply. In the U.S., e.g., top of the leaderboard ranked direct listing application software maker Asana (ASAN US: +15.48%), hard-hit health care service provider Oak Street Health (OSH US: +13.97%), biotech Maravai LifeSciences (MRVI US: +13.24%) and perceived Paypal (PYPL US: -10.49%) takeover target social networker Pinterest (PINS US: +10.23%). Abroad, Israel-based integrated shipping services provider ZIM (ZIM US: +12.73%), German Covid vaccine maker BioNTech (BNTX US: +12.38%) and Sweden-based private equity firm EQT (EQT SS: +11.31%), recreational goods maker Thule Group (THULE SS: +11.30%) and online casino software provider Evolution (EVO SS: +10.30%) stood out. Currency weakness amid big macro growth concerns continued to weigh on exposure across Latin America, such as Brazil Fintech XP (XP US: -8.36%) and Pet Center Comerico (PETZ3 BS: -17.80%).

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 1.59 1.15
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 1.83 -2.96
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 0.28 10.10
IPOX® GINDEX (GNDX) (USD) n/a 2.99 n/a
IPOX® ESG (IPXT) (USD) 42.29 0.60 13.04
IPOX® SPAC (SPAC) (USD) 48.52 1.50 -8.98
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 2.98 12.46
IPOX® Nordic Core (IPND) (EUR) 59.89 3.78 25.44
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 0.08 -1.79
IPOX® China Core (CNI) (USD) 88.02 4.11 -28.54
IPOX® Japan (IPJP) (JPY) 25.75 -1.70 9.66

* 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 added +1.50% to -8.98% YTD and +35.20% since its 7/30/20 launch. SPAC news include: 1) Only 1 SPAC Announced Merger Agreement as Digital World Acquisition (DWAC US: +842.37%) skyrocketed on its merger with former U.S. President’s Donald Trump social media platform Trump Media & Technology Group. 2) 5 SPACs Approved Business Combinations include: a) BowX Acquisition with workspace shared company WeWork (WE US: +29.51%); b) Seaport Global Acquisition with movie rental company Redbox (RDBX US: 10/25) and c) GS Acquisition II with radiation detection provider Mirion Technologies (MIR US: +0.79%). 3) SPACs reportedly in talks include a) Ares Acquisition with luxury gym operator Equinox and b) SVF Investment 3 with Walmart-backed robotics and automation company Symbotic. 4) 18 new SPACs launched last week In the U.S.

GLOBAL Deal-flow Review and Outlook: At least 26 IPOs launched across the accessible global regions last week with the average equally weighted IPO adding +18.97% based on the difference between the final offering price and Friday’s close, respectively. Notable offerings included Norway’s warehouse robotics firm Oslo-traded AutoStore (AUTO NO: +18.65%), Chicago-based upscale burger chain Portillo’s (PTLO US: +87.15%) and Coconut water brand Vita Coco (COCO US: -7.00%). Significant deals lined towards month-end include Swedish auto maker Volvo Cars (VOCARB SS), Mubadala-backed chip maker GlobalFoundries (GFS US), investment boutique Pacific Current Group (PAC AU: +1.96%)-backed GQG Partners (GQG AU), data management software developer Informatica (INFA US), ADNOC and OCI joint venture nitrogen fertilizer supplier Fertiglobe (FERTIGLB UH), clean energy storage firm Fluence (FLNC US), online courses provider Udemy (UDMY US) and designer apparel e-commerce platform operator Rent the Runway (RENT US).

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.

You may also be interested in...

The IPOX® Week, November 29th, 2021
Read More
The IPOX® Week, November 22nd, 2021
Read More
The IPOX® Week, November 15th, 2021
Read More
The IPOX® Week, November 8th, 2021
Read More

Try the demo

Compare Platforms
Check the background of this firm on FINRA's BrokerCheck

Our website uses cookies to improve the performance of our site, to analyze the traffic to our site, and to personalize your experience of the site. You can control cookies through your browser settings. Please find more information on the cookies used on our site in our Privacy Policy. By clicking OK, you agree to allow us to collect information through cookies.

OK