WEEKLY Summary: The broad-based benchmarks drifted higher across the globe last week, as rates and risk (VIX: +0.10%) remained subdued, while the strong global earnings story remained intact, and China recovered for a second week. Weak U.S. employment data released into the long U.S. holiday weekend did little to deter sentiment. The IPOX® Indexes continued to benefit more than when compared to the benchmarks: In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +0.92% to +11.05% YTD, outpacing the S&P 500 (SPX), benchmark for U.S. stocks. Good sentiment extended to markets abroad, with the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE) adding +2.35% to +1.71% YTD and +0.96% to +15.25%, respectively, both well ahead of the benchmarks. Asia-Pacific traded equally firm.
IPOX® EUROPE Investing with the “FPXE” ETF since 2018
Big IPOX® Corporate Actions: In IPOX® Corporate Actions, we are pleased to note the addition of 03/2018 Spin-off health care firm Siemens Healthineers (SHL GY: -1.11%) and 11/2017 IPO food delivery platform HelloFresh (HFG GY: -0.21%) to Germany’s DAX Index. Both firms are tracked in the IPOX® International (IPXI, 6.12% combined weight) and IPOX® 100 Europe (IPOE, 10.13% combined weight).
WEEKLY IPOX® portfolio holDings in focuS: U.S. domiciled firms recording the most significant upside during last week’s trading included hard-hit online insurance agent 05/2020 IPO Selectquote (SLQT US: +44.55%), 09/2020 Direct Listing application software maker Asana (ASAN US: 21.27%), retailer P/E backed 06/2020 IPO Albertsons Cos. (ACI US: +17.47%) and independent oil and gas company IPO M&A Range Resources Corporation (RRC US: +13.87%). In IPOX® exposure linked to non-U.S. domiciled companies tracked in the IPOX® International (ETF: FPXI) and IPOX® 100 Europe (ETF: FPXE), Chinese video games maker 03/2018 IPO Bilibili (BILI US: +14.10%), Canadas’s infrastructure software maker 03/2019 IPO Lightspeed Commerce (LSPD CT: +13.92%), Singapore-based IT services provider 10/2017 IPO Sea (SE US: +10.07%) and Chinese e-commerce behemoth 09/2018 IPO Meituan (3690 HK: +8.80%) stood out. Poor earnings and/or a muted growth outlook pressured U.S. online pet store operator 06/2019 IPO Chewy (CHWY US: -12.89%) and U.S. communication app operator 04/2019 IPO Zoom Video (ZM US: -12.48%), e.g.
|Select IPOX® Indexes Price Returns||2020||Last WEEK||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||0.92||3.65|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||2.35||1.71|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||0.92||11.05|
|IPOX® ESG (IPXT) (USD)||42.29||1.33||14.59|
|IPOX® SPAC (SPAC) (USD)||48.52||0.75||-7.31|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||0.96||15.25|
|IPOX® Nordic Core (IPND) (EUR)||59.89||1.42||21.45|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||1.27||3.41|
|IPOX® China Core (CNI) (USD)||88.02||4.92||-24.56|
|IPOX® Japan (IPJP) (JPY)||25.75||2.60||11.38|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOU1). *also available In UCITS format in Europe in EUR (EPFX IM,), USD (IPXE LN), and GBP (FPX LN).
IPOX® SPAC INDEX (SPAC): The Index added +0.75% to -7.31% YTD and +37.68% since its 7/30/2020 launch last week, marking the first positive weekly close for the IPOX® SPAC Index in ten weeks with companies including Social Capital VI (IPOF US: +6.12%), Social Capital IV (IPOD US: +2.82%) and Bridgetown Holdings (BTWN US: +2.47%) leading the way. SPAC news include: 1) Only 1 SPAC Announced Merger Agreement: a) Petra Acquisition with clinical stage life sciences company Revelation Biosciences. 2) 5 SPACs Approved Business Combinations such as: a) CM Life Sciences II with protein biomarker platform SomaLogic (SLGC); b) Genesis Park Acquisition with space infrastructure startup RedWire (RDW) and c) Supernova Partners with residential real estate platform proptech Offerpad (OPAD). 3) 7 new SPACs launched last week in the U.S.
WEEKLY GLOBAL Deal-flow Review and Outlook: Only 5 IPOs launched globally with the average equally weighted deal adding +45.39% based on the difference between the final offer price and Friday’s close. Amid the holiday-driven low August IPO action, the U.S. saw Its first IPO listing in two weeks with Korean game developer DoubleDown Interactive (DDI US: -10.28%) debuting negatively. Abroad, Korean hydrogen fuel tube trailer producer Iljin Hysolus (271940 KS: +160.64%) soared based on final offer. Ahead of U.S. Futures and Options expiration week and re-balancing, no significant deal flow Is scheduled during the shortened U.S. trading week. Other IPO news include a) UAE state-owned metal producer Emirates Global Aluminum (EGA) selected bankers for IPO at more than $15 billion valuation; a) Italian defense group Leonardo to revisit U.S. subsidiary DRS IPO; b) France’s Antin Infrastructure Partners joins the private equity firms IPO queue; c) Bain and Toshiba co-owned Japanese memory chipmaker Kioxia favors IPO over merger, arranges to list in November; d) communities network Reddit mulls potential IPO and e) Peloton rival NordicTrack maker iFit Health filed for IPO.
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