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Strong Earnings drive IPOX® Europe to fresh all-time High / ETFs in Focus: FPXE US, EFPX IM

IPOX® Schuster LLC, the firm behind the IPOX® Indexes, is pleased to note a fresh all-time High in its IPOX® Europe Index (IPOEE, EUR):

As of 12:00 pm CT, the IPOX® Europe (IPOE, USD) added +1.74% to +7.44% YTD, with the underlying ETF (FPXE US) extending its gain to +67.13% since launch on 10/05/2018, a massive +3426 bps. ahead of the Vanguard FTSE Europe ETF (VGK US).

European UCITS investors can access the following funds tracking the index: FPXE LN (UCITS, GBP), EPFX IM (UCITS, EUR) and IPXE LN (UCITS, USD).

What’s driving the strong return?

Earnings: The European earnings season started, thus far with exceptional results, in particular for small- and mid-caps heavily represented in the portfolio. For example, we note the big jump in portfolio holdings linked to the Nordic Regions such as Sweden’s application software maker, Softbank-backed Sinch (SINCH SS: +29.03% YTD), outdoor equipment maker Thule (THULE SS: +46.36%) YTD or Europe’s key private equity play EQT (EQT SS: +101.71% YTD).

Corporate Actions and IPO M&A:  Last week, IPOX® Holding IPO Belgium auto retailer M&A D’Ieteren (DIE BB: +95.87%) surged after U.S. private equity firm Hellmann & Friedman and Blackrock purchased a big stake in one of its units.

Active management around a diversified, passive core:  The portfolio exited positions in companies including Danish wind-farm operator behemoth Orsted (ORSTED DC: -22.67% YTD) and Germany’s break maker Knorr Bremse (KBX GY: -16.19% YTD), positions which subsequently declined sharply.   

Exposure to European IPOs exclusively listed in the U.S:  To be reflective of the global nature of ECM activity, the IPOX® Europe includes European domiciled companies trading and exclusively listed abroad, including the United States. This approach has allowed for the exposure to winning IPOs, sucahs as German biotech and COVID 19 vaccine maker BioNTech (BNTX US: +242.21% YTD), for example.