The GINDEX® Growth Infusion U.S. Index

The GINDEX® Growth Infusion U.S. Index (GNDX) is an equally weighted index measuring the performance of companies that have previously acquired a 100% interest in a firm that has gone public through an IPO, Direct Listing, or Spin-off in the United States (“IPO M&A”). The index utilizes a 10% cap on all constituents and is reconstituted and adjusted quarterly.

Key Features:

  • IPO Acquirer Focus: Uniquely targets established companies that strategically acquire firms shortly after their public market debut (IPOs, Spin-offs, Direct Listings).

  • Growth Infusion Strategy: Designed to capture the potential performance benefits when established companies integrate the innovation and growth dynamics of newly public firms.

  • Equal Weighting: Provides balanced exposure across all constituents, preventing over-concentration in the largest acquirers.

Capturing Growth Through Strategic IPO Acquisitions

The "Growth Infusion" Rationale

Acquiring companies shortly after their IPO offers unique strategic advantages. As we found in our internal research, acquiring innovation externally can be faster and potentially less risky than internal development. The IPO process itself reduces information asymmetry compared to acquiring private targets, providing acquirers with greater transparency. The GINDEX® strategy posits that by acquiring these recently public, often innovative firms, established companies can become "infused" with new growth potential, potentially leading to superior long-term performance.

Leading Acquirers Across Industries

The GINDEX® Growth Infusion U.S. Index demonstrates that acquiring recent IPOs is a strategy employed by leading firms across diverse sectors. Technology giants like Microsoft, Nvidia, Alphabet, Amazon, and Salesforce frequently leverage IPO M&A to gain access to cutting-edge technologies and talent. Similarly, healthcare leaders such as Amgen, Bristol Myers Squibb, and Boston Scientific acquire innovative biotech and medtech firms to enhance their pipelines.

Beyond Tech and Healthcare

This strategic approach extends beyond the traditionally high-growth sectors. Financial services firms like American International Group (AIG) and Intercontinental Exchange, industrial companies such as Republic Services and Roper Technologies, energy players like Dominion Energy and EQT, and consumer staples giants including Walmart and Kroger are also represented in the index, showcasing the broad applicability of the "growth infusion" strategy across the U.S. economy.

The GINDEX® Growth Infusion U.S. Index offers investors a distinct approach to capturing potential long-term growth by focusing on established companies actively shaping their future through strategic acquisitions of newly public firms. Also learn more about the international counterpart, the GINDEX® Growth Infusion International Index.

Contact info@ipox.com for licensing and sub-advisory opportunities.