The indexes we propose in Oval all have a specific theme. For this special pre-Christmas one, we wanted to share with you an opportunity to be part of a theme that has been super important for the markets in the last six months, and that will continue to dominate the finance news for the months to come.
2020 is shaping up to be the largest year for IPOs (Initial Public Offerings - learn more here) since the 2000 dot-com bubble. There have been some really big companies that were private for a long time, and thanks to recent IPOs have opened up to investments by being listed on an exchange. This index enables you to have a basket of these companies that have recently listed, all together, reducing the risk to allow you to choose on your own, one by one.
What is special about Mission IPOssible?
Unlike other indexes on Oval, its composition will update regularly to add the newest IPO’d companies and hold only the 30 largest and most liquid ones traded on the US stock exchange. Many of the companies you know well because you have read about them in the news or use them frequently.
The company has probably been one of the star IPOs of the year. Valued at over 30 billion dollars, the company that changed the way we travel and sleep in new cities, has finally decided to go public. Follow the performance of the tech darlings of Silicon Valley, that no matter the pandemic has even managed to turn a profit in this last quarter.
The largest ride sharing company went public in 2019. After some volatile beginning it has been growing in size and thus market share over the past year. The theme of peer-to-peer movement in cities and driverless cars continues to get closer to becoming a reality and these companies are at the forefront of these technological innovations.
It recently announced to be one of the first companies to see very positive results on the efficacy of its vaccine for COVID-19. Governments around the world have already fled to make orders for the first months of 2021. The company should see its revenues jump over the next year.
For those that do not know about Peloton, the company has become famous for its at home exercise solutions with virtual classes. As we all started to lockdown, the company sales surged, as we wanted to find a distraction to working from home.
Zoom and Slack
Talking about working from home, we are sure many of you now live on one or both of these platforms. They have supported us in communication via chat and via video as our companies moved remote. For startups like Oval, working with these tools was normal, but the pandemic has accelerated the growth of these companies to become mainstream. I mean, many of you will have had Zoom birthdays this year! ;)
A company that maybe only the tech nerds know, it is a data warehousing company that became the largest software company to IPO in the US. It was one of those super hyped deals, with its shares that were supposed to be sold initially for 75 to 85 dollars, actually came to the market at 120$ and reached 300$ during the first day. Snowflake became the largest company to ever double in value on its opening day, reaching a market cap of close to $75 billion.
Features of this ETN
As always, Mission IPOssible is an Exchange Traded Note (ETN) that tracks the weighted performance of each share inside the index. The special thing about this one is that every time there is a new large IPO, or every quarter, the index rebalances.
Furthermore, the performance of the index has been stellar! Compared to the S&P 500 performance from November 2019 to November 2020, the index has over performed by far giving an idea that IPO stocks have a great market trend past their market listing.
Performance is also influenced by the sector, with technology and healthcare companies making up over 56% of the index. These are two sectors that have benefited significantly from the global trends of 2020 and that are likely to continue to be instrumental in many developed economies in the following years.
Who is this for?
Mission IPOssible is one of the few 100% equity ETNs, which leads to a higher risk level compared to other ETNs, on the Oval investments marketplace. This means that it has a higher volatility, thus bringing higher returns but also a higher probability of bigger losses.
The ETN is designed for retail investors with moderate experience of financial markets. They have a medium term investment horizon and are looking for an investment opportunity that reflects an expectation that the underlying will increase in value over time and are able to bear a total loss of the amount invested.
As always, we want to surprise you with innovative ideas and we believe this ETN will be one to watch in the next year. By making investments start at 10€ as usual, we are giving you the opportunity to choose to believe in these growing startups even with a tiny initial investment.
Obviously the startups have now become larger companies, but they continue to be the ones that lead innovation in multiple industries. You now have the opportunity to be the first to follow their performance, in an ever changing ETN, that adapts to the market and the new opportunities available. The only products that tracks IPOs is the Renaissance IPO ETF, listed in the US and very inaccessible to the European investors, so we hope that you will appreciate Oval and its partner Cirdan Capital and Smart ETN, for bringing you such a special product available with the click of a button, always from our evolving Oval app.
Furthermore, it will be the first product ever to have Airbnb shares inside it. Usually ETFs add stocks in a period of 3 to 6 months, in Mission IPOssible we have added Airbnb just a few days after it started trading, to give all of you access to one of the hottest IPOs of the year.
Oval does not provide investment advice and individual investors should make their own decisions. Seek the advice of a financial consultant if you are not sure about your investment. Your capital is at risk and the value of investments can go up as well as down and you may receive back less than your original investment: you should not invest money that you can’t afford to lose.