The IPOX® Week, August 30th, 2021

  • IPOX® Indexes record massive gains, outperform. IPOX® 100 U.S. (ETF: FPX) soars +4.15%.
  • IPOX® International (ETF: FPXI) jumps +3.80%. IPOX® Europe U.S. (ETF: FPX) adds +3.03%.
  • IPOX® SPAC drops -0.07% to +36.66% since July 2020 start. 3 SPACs launched last week.
  • No significant further August IPOs scheduled as global Q4 2020 IPO pipeline builds.

WEEKLY Summary:  The IPOX® Indexes recorded massive gains towards month-end, elevated by explosive earnings growth across select IPOX® specialty exposure, smoother sailing in China-linked equities and continued big Momentum in the broad-based benchmarks. In the U.S., e.g., the IPOX® 100 U.S. (ETF: FPX) added +4.15% to +10.04% YTD, well ahead of the S&P 500 (SPY), benchmark for U.S. stocks. Positive sentiment extended to companies with a non-U.S. domicile with the IPOX® 100 Europe (ETF: FPXE) surging +3.03% to +14.16% YTD, a fresh all-time High, for example. Gains across European and China-domiciled stocks also helped the IPOX® International (ETF: FPXI) to recover more than the previous week’s losses, adding +3.80% to -0.63% YTD. We also note another big week for the IPOX® Japan (IPJP): The liquid benchmark for a broadly diversified group of Japan-domiciled New Listings and Japanese companies pursuing Corporate M&A added +3.86% to +8.56% YTD, extended the relative YTD lead versus the typically well-correlated TSE Mothers Index (TSEMOTHR) to a massive +1725 bps.

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

IPOX® portfolio holDings in focuS:   U.S. domiciled companies tracked in the IPOX® 100 U.S.  (ETF: FPX) led the week’s leaderboard with focus on firms including self-driving technology provider 04/2021 IPO Tusimple (TSP US: +47.06%), payment processing company infrastructure software maker 12/2019 IPO Bill.Com (BILL US:  +35.65%), IPO M&A energy explorer Range Resources (RRC US: +19.03%), fertility benefits management firm 10/2019 IPO Progyny (PGNY US: +18.91%) and security software maker 06/2019 IPO CrowdStrike (CRWD US: +18.68%).  Non-U.S. domiciled firms in focus included blue-chip Chinese Real Estate Services provider 01/2019 IPO Country Garden Services (6098 HK: +11.21%), Israel-based shipping services company 01/2021 IPO ZIM Integrated Shipping Services (ZIM US: +10.92%), Britain’s 02/2021 IPO Auction Technology Group (ATG LN: +10.52%) and Yokneam-based medical devices maker 08/2019 IPO Inmode (INMD US: +9.69%).   Kansas-based U.S. online insurance agency 05/2020 IPO Selectquote (SLQT US:  -37.45%), Malaysia’s 10/2020 IPO Mr. DIY Group (MRDIY MK: -7.05%) and Korea’s online marketplace 03/2021 IPO Coupang (CPNG US: -4.15%) ranked amongst the worst performing IPOX® Portfolio Holdings last week.

Select IPOX® Indexes Price Returns 2020 Last WEEK YTD
IPOX® Indexes: Global/International
IPOX® Global Super Liquid (IPGL50) (USD) 66.63 3.89 2.71
IPOX® International (IPXI) (USD) (ETF: FPXI) 72.15 3.80 -0.63
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 47.32 4.15 10.04
IPOX® ESG (IPXT) (USD) 42.29 4.27 13.08
IPOX® SPAC (SPAC) (USD) 48.52 -0.07 -8.00
IPOX® Indexes: Europe/Nordic
IPOX® Europe (IPOE) * (USD) (ETF: FPXE) 35.14 3.03 14.16
IPOX® Nordic Core (IPND) (EUR) 59.89 1.87 26.53
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 47.50 3.66 -2.07
IPOX® China Core (CNI) (USD) 88.02 6.25 -28.10
IPOX® Japan (IPJP) (JPY) 25.75 3.86 8.56

* 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 fell -0.07% to -8.00% YTD and +36.66% since its 7/30/2020 launch. SPAC news include: 1) 3 SPACs Announced Merger Agreements include: a) NextGen Acquisition II with Virgin Galactic satellite launch service spinoff Virgin Orbitb) Magnum Opus Acquisition with business magazine publisher Forbes Global Media and c) Ace Global Business Acquisition with Hong Kong recipe hub startup DayDayCook2) 8 SPACs Approved Business Combinations such as: a) Good Works Acquisition with bitcoin miner Cipher Mining (CIFR: 8/30); b) Tortoise Acquisition II with EV charging firm Volta (VLTA) and c) Fifth Wall Acquisition I with smart home automation startup SmartRent (SMRT). 3) SPACs reportedly in talk include: Altitude Acquisition with SoftBank-backed car sharing startup Getaround4) 3 new SPACs launched last week in the U.S.

WEEKLY Deal-flow Review and Outlook:   6 IPOs launched globally with the average equally weighted deal adding +14.31% based on the difference between final offer price and Friday’s close. No firms commenced trading in the U.S. Abroad, Palantir-backed Swiss satellite IoT startup Astrocast (ASTRO NO: +105.73%) surged in Oslo, while H.K. IPO medical equipment maker Acotec (6669 HK: -23.95%) sank despite its 650x retail oversubscription. No significant deals are expected fort this week. Other IPO news include a) Amazon-backed EV maker Rivian filed for IPO; b) eyewear maker Warby Parker opted out of traditional IPO to go public via a Direct Listing; c) more private equity firms mulling IPO include TPG, Swedish investment firm Storskogen Group and Goldman Sach’s alternative asset unit Petershill; d) India’s biggest insurer Life Insurance Corp of India (LIC) is on the nation’s IPO fast track; e) restaurant payment software provider Toast, General Atlantic-backed digital engagement platform EngageSmart, Advent-backed food company Sovos Brands and hair care product brand Olaplex and Chinese AI group SenseTime filed.

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