SchusterWatch #771 (1/20/2025)
IPOX® Indexes soar ahead of inauguaration week and earnings.
MAG7-free IPOX® 100 U.S. (FPX) adds massive +6% to +7% YTD.
Bloomberg ranks IPOX® Europe ETF (FPXE) as a Top 25 ETF for 2025.
Read IPOX® CEO Schuster on Venture Global’s IPO as Energy listings rebound.
IPOX® WEEKLY REVIEW: Better behaving bond markets after relatively muted U.S. inflation numbers, a solid first round of earnings for U.S. bellwethers and subsequently lower risk (VIX: -18.48%) propelled the IPOX® Indexes during options expiration week. Trading was erratic with select IPOX® Indexes trading negatively correlated on select days.
In the U.S., the IPOX® 100 U.S. (ETF: FPX) topped the weekly performance rankings, extending the YTD lead vs. the S&P 500 (SPX) to +490 bps. 85% of holdings rose, with the average (median) equally weighted firm adding +5.05% (+5.24%), lagging the IPOX® 100 U.S. Amid the excellent week for core positions, select small/mid-caps were highlights, such as recently added real estate broker serial acquirer Compass (COMP US: +26.36%), sports center operator LifeTime Group (LTH US: +17.20%), Wealth Tec Sofi (SOFI US: +16.61%) and oilfield equipment maker Kodiak Gas Services (KGS US: +12.81%). Health care remained under pressure, including surgical robot maker Procept (PRCT US: -12.47%) and biotech Janux (JANX US: -12.92%).
We are pleased to note that Bloomberg has added the IPOX®-linked “FPXE” ETF to the list of top 25 ETFs for 2025. Amid the big relative lag of European benchmarks, … “yet a more warranted approach might be to capture newer European companies rather than older, traditional ones…” pioneered by IPOX®. For last week, the index added +3.12% to +3.21% YTD. European small-cap tech contributed to the strong showing, including UK-traded verification platform Trustpilot (TRST LN: +19.71%) and hardware maker Raspberry (RPI LN: +15.31%).
THE IPOX® SPAC INDEX: The Index reversed some of last week’s big losses to add +4.39% to +0.42% YTD. Quantum-computing stock InoQ (IONQ US: 20.29%) surged following Microsoft’s announcement on its “2025 Quantum-Ready” program while profit taking hit Genetic testing company GeneDx (WGS US: -22.26%), despite better-than-expected preliminary FY24 financial results. Two SPACs completed business combinations: Chenghe Acquisition I merged with Taiwan-based golf shaft manufacturer Femco Steel Technology (KBSX US: -9.22%) and Abu Dhabi private family office Burkhan World Investments (BZAI US: -19.12%) debuted on NASDAQ after merging with previously OTC-traded BurTech Acquisition. Three new SPACs launched in the U.S. last week.
GLOBAL ECM REVIEW AND OUTLOOK: 27 new listings debuted globally this past week, with the average new issue gaining +41.12% from offer price to Friday’s close and the median listing adding +16.07%. The largest IPO of the week was in the U.S., with oil and gas services firm Flowco Holdings (FLOC US: +23.75%) raising $427 million in the first sizable New York listing of 2025. Hong Kong continued to see a flurry of activity, with Yibin City Commercial Bank (2596 HK: +0.39%, $230 million) and self driving car testing firm Beijing Saimo Technology (2571 HK: +1.31%, $56 million) among the new listings. Taiwan-based Advanced Echem Materials Co Ltd (4749 TT: +43.33%, $136 million) was a notable listing in other accessible markets.
In upcoming listings, Bloomberg interviewed IPOX® CEO Josef Schuster on the rebound in Energy listings amid this week’s IPO of LNG shipping giant Venture Global ($2.3 billion at $110 billion valuation), expected to debut on Friday. Read the article with his comments here.
Don’t miss the latest IPOX® Update for a summary of last week’s most important IPO news, including filings by eToro and Titan America.
