The IPOX® Week, October 26th, 2020

  • IPOX 100 U.S. Index (ETF: FPX) gains, closes week just shy of all-time high, tops weekly performance rankings.
  • Untracked by the major benchmarks, IPOX heavyweight SNAP Inc. (SNAP US) soars after reporting quarterly results.
  • SPAC-momentum slows as IPOX SPAC (SPAC) lags anew.
  • P/E -backed U.S. IPOs debut mixed. Flurry of deals lined up.

IPOX 100 U.S. Index (ETF: FPX) gains, finishes week just shy off all-time high. Amid stable risk (VIX: +0.51%), more COVID-19 anxiety and rising U.S. yields, the IPOX Indexes traded mixed last week. While non-U.S. domiciled exposure declined sharply across the board, extraordinarily strong earnings in key IPOX heavyweights propelled the IPOX 100 U.S. (IPXO) to finish the week just shy off its 10/13 all-time high. The diversified, large-cap centric index, which

IPOX® 100 U.S. (ETF: FPX) closes just shy of all-time high:

serves as the benchmark for the $1.62 billion “FPX” ETF, added +1.18% to +29.12% YTD last week, extending the YTD lead vs. the S&P 500 (SPX), benchmark for U.S. stocks, to a massive +2186 bps. The strong showing was driven by big gains in portfolio holdings linked to the growth AND value portion of the index including IPOX top holding social networker Snap Inc. (SNAP US: +55.12%), food delivery/ride sharing platform operator UBER (UBER US: +8.99%), music streaming services provider Spotify (SPOT US: +7.98%), 3/19 Spin-off industrial refrigeration systems maker Carrier Global (CARR US: +6.62%) and medical equipment maker IPOX heavyweight IPO M&A Thermo Fisher (TMO US: +2.47%).

IPOX® SPAC Index (SPAC) update: The Index fell -4.90% last week to +5.48% since its July 30 launch, lagging the benchmarks anew. SPAC news include 1) Completed SPAC Mergers: a) FinTech III with payment processor Paya Payment (PAYA); b) DiamondPeak with electric truck maker Lordstown Motors (RIDE); 2) Announced SPAC Acquisition Targets: a) South Mountain Merger with B2B payment software company Billtrust; b) Panacea with oncology biopharma Nuvation Bio; c) Acamar Partners with used car consignment platform CarLotz, and d) Longevity with live biotherapeutics developer 4D Pharma; 3) 17 new SPACs IPO’d.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 0.26 27.93 46.75
IPOX® International (IPXI)* (USD) (ETF: FPXI) -1.55 31.37 44.85
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 1.18 29.60 29.12
IPOX® ESG (IPXT) (USD) -0.19
IPOX® SPAC (SPAC) (USD) -4.90
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) -4.01 34.55 21.96
IPOX® Nordic (IPND) -1.60 38.52 41.85
IPOX® 100 Europe (IPOE)* (USD) -2.18 30.97 17.16
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -1.27 4.41 37.93
IPOX® China (CNI) (USD) -1.59 26.31 54.18
IPOX® Japan (IPJP)** (JPY) -3.23 37.91 21.68

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):

SNAP INC 55.12 SCATEC SOLAR ASA -19.85
PINTEREST INC 20.29 POWERLONG -16.41
ERICSSON TEL-SP ADR 15.51 CRISPR THERAPEUTICS -15.64
FARFETCH LTD 11.04 HELLOFRESH SE -14.02
ONCOPEPTIDES AB 10.70 10X GENOMICS INC -13.09
WIZZ AIR HOLDINGS PLC 9.17 VARTA AG -12.79
UBER TECHNOLOGIES INC 8.99 INARI MEDICAL INC -12.73
SAFEHOLD INC 8.33 NANO-X IMAGING LTD -12.67
SPOTIFY TECHNOLOGY SA 7.98 FREEE KK -12.66
WUXI BIOLOGICS CAYMAN 6.95 TRAINLINE PLC -12.49

Weekly IPO Deal-flow Review and Outlook: 21 firms IPO’d across the global regions, with the average (median) equally weighted company adding +6.70% (+0.19%) based on the final offer price and respective close. In the U.S., P/E-backed IPOs debuted mixed, including cybersecurity firm McAfee (MCFE US: -6.05%) and Vista-backed software developer Datto (MSP US: +7.41%). Abroad, Saudi Arabian supermarket operator BinDawood (BINDAWOO AB: +20.83%), Norwegian mobile messaging unicorn LINK Mobility (LINK NO: +18.72%), and Canadas Topaz Energy (TPZ CN: +3.08%) were well-received, while Thailand’s SCG Packaging (SCGP TB: 0.00) closed flat. A flurry of deals are expected towards month-end, including Ohio-based car insurance unicorn Root (ROOT US), Chinese fintech giant Lufax (LU US), first Spanish IPO in two years, renewable energy firm Soltec Power (SOL SM), the first IPO in Spain in two years, the biggest Philippine broadband operator Coverage ICT Solutions (CNVRG PM) and Malaysia’s home improvement retailer MR DIY Group (MRDIY MK). Other IPO news include: 1) PE-backed pool and spa care company Leslie’s to mull $600M in IPO; 2) online thrift shop ThredUp filed confidentially; 3) Vivendi’s Polish pay TV unit Canal + Polska to launch Warsaw IPO.

Track global deal flow live on: https://bit.ly/32zolmG

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