The ETF will focus on biotechnology companies that are in the clinical trials stage, which include those that are typically younger, smaller companies without a FDA approved drug but instead focus on testing their experimental treatments in human clinical trials.
Top holdings include Clovis Oncology 3.2%, Array Biopharma 2.8%, Biocryst Pharmaceuticals 2.4%, Blueprint Medicines 2.3% and Aimmune Therapeutics. Components are also more-or-less equally weighted to allow each security’s performance to affect the fund equally.
Consequently, potential investors would be exposed to the small-cap segment of the biotech industry, which could prove to produce the next blockbuster drug or provide capital appreciation as an acquisition target from larger companies.
“Clinical trial stage biotech firms are important because they work at the cutting edge of experimental biotechnology: taking risks, testing out innovative approaches and novel compounds that, if approved, could one day become blockbuster drugs,” according to BioShares.
Financial advisors who are interested in learning more about the biotech space can register for the Tuesday, November 29 webcast here.