WisdomTree has launched a new equity ETF targeting companies that are poised to benefit from advancements in genetics and biotechnology.
Dr. Jamie Metzl.
The WisdomTree BioRevolution Fund (WDNA US) has listed on Cboe BZX Exchange and comes with an expense ratio of 0.45%.
The fund is linked to the proprietary WisdomTree BioRevolution Index which was developed by WisdomTree in collaboration with prominent technology futurist Dr. Jamie Metzl, author of Hacking Darwin: Genetic Engineering and the Future of Humanity.
The index selects its constituents from a universe of developed market stocks with market capitalizations greater than $300 million and average daily trading volumes above $1m.
The methodology identifies companies that derive at least 50% of their revenue from industries linked to four ‘BioRevolution’ sub-themes: ‘Human Health’ – the application of genetic technologies to prevent and treat disease; ‘Agriculture and Food’ – the transformation of agriculture, aquaculture, and food production; ‘Materials, Chemicals, and Energy’ – biological re-engineering used to produce an increasing percentage of the physical inputs needed for manufacturing; and ‘Biological Machines and Interfaces’ – DNA as a storage solution.
The index employs a modified, equally-weighted approach whereby an index committee makes strategic decisions – effectively, active determinations – regarding the weight allocated to the sub-themes and stocks based on quantitative and qualitative criteria. Rebalancing occurs semi-annually in April and October.
As of 3 June, the index contained 115 securities with approximately 85% of the total weight allocated to stocks listed in the US and a similar percentage dedicated to the health care sector. It is well-diversified at the stock level with the largest constituent having a weight of 1.3%.
Jeremy Schwartz, Global Head of Research at WisdomTree, said: “The biology revolution is creating a historic investment opportunity equivalent to the industrial and internet revolutions. The WisdomTree BioRevolution Fund offers diversified exposure to a basket of companies that we believe are uniquely positioned to seize the opportunity at the intersection of biology and technology. This launch represents the latest in our ongoing commitment to offering investors innovative investment opportunities.”
Dr. Jamie Metzl added: “The genetics and biotechnology revolutions won’t just change our healthcare systems, allowing us to live healthier and longer lives. They will also fundamentally transform our world far beyond healthcare. The same technologies driving healthcare innovation will have a seismic impact on industries including agriculture, materials, energy, and information processing, revolutionizing the ways we treat disease, grow food, produce materials, and process data. If the nineteenth was the century of chemistry and the twentieth of physics, the twenty-first will be the century of biology. I am delighted to be collaborating with the amazing team at WisdomTree in uncovering the massive opportunities of this historic megatrend.”