IPOX Schuster LLC

Why IPOX?

Cutting-Edge Tools to Navigate U.S. and European IPO Markets

IPOX Schuster LLC is the creator of the family of IPOX Indexes (patent pending). Our philosophy is to classify IPOs into a separate equity sector for a long period of time after “going public” because IPOs share unique long-run empirical dynamics. At the same time, our mission is to bring the concept of “Average IPO Investing” or “IPO Indexing” to the U.S. and European marketplace. The IPOX Indexes characterize the aftermarket performance of IPOs more accurately and comprehensively than any other index group. The profile of the average IPOX constituents truly reflects equity capital markets activity and the growth and innovativeness of the respective economy.

IPOX Indexes

The IPOX indexes are value-weighted indexes that measure the average performance of IPO companies in calendar time which satisfy certain quantitative entrance requirements. The IPOX-100 and IPOX-30 indexes are subsets of the IPOX-Composite Index, which represents the universe of IPO activity in the respective equity capital market.

IPOX Index Fact Sheets

The links to the IPOX U.S. and IPOX Europe pages provide index definitions, capitalization statistics, sector diversification and historical performance, all updated weekly.

IPOX Schuster/Standard & Poor’s

While remaining independent from the main index providers, IPOX Schuster LLC has subcontracted the real-time calculation and partial maintenance of the series of IPOX U.S. and IPOX Europe Indexes to Standard & Poor’s, one of the world’s foremost index providers.

How IPOX Indexes are constructed

Index Constituents to the IPOX Indexes are chosen based on unbiased and purely quantitative entrance and exit rules. IPOs enter the IPOX Indexes on the 7th trading day of aftermarket trading if certain quantitative entrance requirements are met. Subject to satisfying size, float and certain initial trading characteristics, the announcement of whether the applicable IPO will be an index constituent is made at the close of the companies first trading day. IPOX Index Constituents automatically exit the IPOX Indexes after the predetermined period of 1000 trading days or approximately four years. The series of IPOX U.S. and IPOX Europe Indexes maintain a totally consistent index methodology.

All-Cap Momentum Exposure

IPOX Schuster LLC is the only provider of a comprehensive series of IPO indexes for the U.S. and European markets which meet regulatory requirements over a long period of time. These indexes have been the outcome of a decade of academic and professional research on international IPO markets. Because of the time-varying change in the average profile of IPO companies in both the U.S. and Europe—a reflection of equity capital market trends and the growth and innovativeness of the respective economy—IPOX Indexes do not make a distinction between size, value, style or growth.

Reconstitution

While the IPOX-Composite Index is dynamically reconstituted to accurately reflect IPO activity, the IPOX-100 and IPOX-30 Index are adjusted quarterly. In the quarterly reconstitution of the IPOX-100 and IPOX-30 Index, the market capitalization of each IPOX Composite constituent is reranked as of the close of every second Wednesday in the quarter. The newly adjusted index membership takes effect on the Monday following the third Friday of every quarter until the next quarterly reconstitution process. While there is no minimum constituent’s weight in the IPOX-Composite, the weighting of the largest constituents stocks in the IPOX-100 and IPOX-30 is capped at 10%. This insures that regulatory diversification and RIC requirements are met.