Simplify Asset Management has launched a new ETF providing actively managed exposure to innovative US companies across disruptive healthcare sectors.
The ETF seeks out innovative companies across fast-growing, disruptive healthcare sectors.
The Simplify Health Care ETF (PINK US) has been listed on NYSE Arca with an expense ratio of 0.50%.
The fund is actively managed by hedge fund investor Michael Taylor who has more than 20 years of experience investing in the healthcare and biotech spaces.
Michael Taylor commented: “The healthcare and biotech sectors are in the midst of a period of incredible innovation, rising to meet not only the ongoing pandemic but producing breakthrough research that could have significant implications in the fight against cancer.
“But identifying those companies best poised for potential outperformance requires deep research and an active management approach. I could not be more pleased to be working with the Simplify team on PINK, providing investors with an important new tool.”
Investment approach
The fund invests in US-listed equities, including common and preferred stock, of companies classified to the healthcare sector according to the Global Industry Classification Standard (GICS). Eligible firms may be drawn from any market capitalization segment.
The fund will typically hold between 50 to 100 securities, targeting companies that are developing new treatments within gene therapy, targeted therapeutics, CRISPR (genome editing technology), medtech, and other disruptive health care sectors, as well as companies whose business models reduce costs or improve quality in health care systems.
Security selection is based on fundamental, bottom-up analysis that seeks to identify high-quality companies whose earnings are expected to grow faster than inflation and the economy in general. In particular, Simplify will focus on firms with robust management quality, a strong market leadership position, significant research & development, high barriers to entry, recurring revenues from a diverse range of products, consistent financial performance, and superior corporate governance.
As of 18 October, the portfolio contained 51 holdings. Notable positions included Johnson & Johnson (9.1%), United Health (8.4%), Abbott Labs (4.8%), Dexcom (4.8%), Medtronic (4.7%), Zoetis (4.2%), and Insulet (3.7%).
The fund is the first not-for-profit ETF with all net proceeds from managing the fund being donated to Susan G. Komen, a leading breast cancer organization.
Paul Kim, CEO and co-Founder of Simplify Asset Management, said: “Breast cancer impacts one in eight women in the US at some point in their lifetimes. Funding research to find the cures is an incredible challenge that demands significant financial resources, which is why Simplify is very pleased to have Susan G. Komen as the beneficiary for PINK, a fund that we believe provides investors with a way to grow their portfolios while simultaneously supporting an incredibly worthy cause.”
Paula Schneider, President and CEO of Susan G. Komen, added: “We’re very grateful for this tangible commitment by the Simplify team to create a long-term source of support for the important work we’re doing to save lives and pursue an end to breast cancer. This commitment will help support our advocacy, breakthrough research and important patient support and care for those facing the disease today.”