VanEck has launched a new ETF in Europe targeting two cutting-edge themes in the healthcare industry: genomics and digitalization.
Martijn Rozemuller, CEO at VanEck Europe
The VanEck Genomics and Healthcare Innovators UCITS ETF has been listed on London Stock Exchange in US dollars (CURE LN) and pound sterling (CURG LN) as well as on Deutsche Börse Xetra in euros (CURE GY).
Martijn Rozemuller, CEO at VanEck Europe, said: Genomics is a branch of science that studies the interaction between genes and gene products. Genetic treatments, which have once been considered experimental and expensive, are becoming more affordable and common. The genomics industry, which targets prominent topics such as the treatment of cancer, ageing and congenital diseases, is still in the early stages of its development and thus still offers great potential.”
Rozemuller added: “In addition, the healthcare industry, which was lagging behind in adopting IT solutions before the pandemic, has seen a surge in digitalisation over the past two years. Face-to-face meetings with patients were no longer an option, and digital solutions were able to prove their everyday viability in the healthcare industry. So far, however, digital solutions are still far from widespread. We assume that there is still room for further growth.”
Methodology
The ETF tracks the MVIS Global Future Healthcare ESG Index which consists of developed market stocks with market capitalizations above $150 million that generate at least 50% of their revenue from the following business segments: health therapies based on the targeted modification of genetic code using mRNA; technology platforms that provide therapies for healthcare based on genetics; laboratory equipment or services focused on genetics-based health therapies; software facilitating online medical consultations; online pharmacies; software for the management of medical practices and patient records; and ambulatory medical IoT devices.
Constituents are weighted by float-adjusted market capitalization subject to a single security cap of 8%. The index is reconstituted and rebalanced on a semi-annual basis.
As of 8 September, stocks from the US accounted for over three-quarters (77.4%) of the total index weight with the next-largest country exposures being Germany (4.9%) and Japan (3.6%).
Notable positions included Vertex Pharmaceuticals (8.3%), Regeneron Pharmaceuticals (7.8%), Dexcom (7.5%), Moderna (6.3%), Alnylam Pharmaceuticals (5.4%), Illumina (5.3%), Veeva Systems (4.9%), and BioNTech (4.4%).
The ETF comes with an expense ratio of 0.35%.
Income is accumulated within the portfolio.