Index Inclusion Effect drives FPX and FPXI ETFs to big gains today / ABNB, MRVL, TSLA
IPOX Schuster LLC, the firm behind the IPOX® Strategies, is pleased to note a fresh all-time High in its IPOX® 100 U.S. and IPOX® International.
As of 12:00 pm CT, the diversified, FANG-free IPOX® 100 U.S. Index added +2.14% to +51.10% YTD, while strength extended to the IPOX® International Index which surged to +65.64% YTD.
Gains were driven by a jump in companies associated with Friday’s re-balancing activity and respective index inclusions, including IPO M&As chip maker Marvell Technologies (MRVL US: +3.42%, inclusion into the Nasdaq 100 on Friday) and electric car maker Tesla (TSLA US: +4.14%, inclusion into the S&P 500 on Friday), as well as recent New Listing online travel marketplace Airbnb (ABNB US: +8.16%) which was added to IPOX last week. A surge in social networker IPOX 100 U.S. Index heavyweight SNAP (SNAP US: +8.32%), shunned by the major index providers by default on its voting rights structure, increased relative gains. In non-U.S. domiciled exposure tracked in the IPOX International, we note further strength in Mexican Tequila maker $9 billion Becle (CUERVO MM) which extended its YTD gain to +40.04%.
With an average overlap of just 3% to the conventional benchmarks, the IPOX® Indexes are institutional-caliber, asset-allocation focused strategy portfolios managed with the goal to access the asset allocation benefits of investing Global New Listings and their unique factor footprint, respectively.
Amongst the array of Financial Products tracking IPOX®, the IPOX® 100 U.S. and IPOX® International serve as the underlying for the USD 2 billion First Trust U.S. Equity Opportunities ETF (Ticker: FPX) (ETF factsheet: https://bit.ly/36Siviu) and USD 1 billion First Trust International Equity Opportunities ETF (Ticker: FPXI) (ETF factsheet: https://bit.ly/39lIhOM). Unadjusted for risk, today’s move extended the relative lead of the “FPX” and “FPXI” ETFs to +29,012 bps. and +9,439 bps. since fund launch in 2006 (FPX) and 2014 (FPXI), respectively.