New Listing

First Trust expands thematic ETF range with double launch

Tom Eckett

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First Trust has expanded its thematic ETF range with the launch of two products offering exposure to cybersecurity and biotechnology, 

ETF Stream 

can reveal.

The First Trust Nasdaq UCITS Cybersecurity ETF (CIBR) and the First Trust NYSE Arca Biotechnology UCITS ETF (FBT) are listed on the London Stock Exchange with total expense ratios (TERs) of 0.60%.

Tracking the Nasdaq CTA Cybersecurity index, CIBR offers investors exposure to around 40 companies engaged in the cybersecurity segment of the technology and industrials sector.

CIBR mirrors the US version which was launched in June 2015 and has gathered $1.6bn assets.

The index also includes companies primarily involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices, in order to provide protection to the integrity of data and network operations.

To be included in the index, a company must be classified as a cybersecurity firm as determined by the Consumer Technology Association (CTA).

Furthermore, it must have a $250m minimum market cap, a minimum free float of 20% and a minimum three-month average daily dollar trading volume of $1m.

Rebalanced quarterly, each security is capped at 6% with no more than five securities at the cap.

Gregg Guerin (pictured), senior product specialist at First Trust, commented: “Cyber-crime had already been on the rise but has been greatly accelerated by the COVID-19 crisis pushing millions of people to work remotely, the importance of a secure internet is now, more than ever, absolutely paramount.

“Further accentuating this need, there had already been and continues to be a growing trend of companies storing data in the cloud and businesses increasingly are digitalizing their systems to ensure scalability and profitability. Thus, the critical importance of cybersecurity has never been higher.”

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FBT tracks the NYSE Biotechnology index which offers exposure to 30 equally-weighted companies in the biotechnology industry primarily involved in the use of biological processes to develop products or services.

These services include recombinant DNA technology, molecular biology, genetic engineering and genomics.

FBT was originally launched in the US in June 2006 and has $2bn assets under management (AUM).

Guerin continued: “As the world steps-up in the battle to beat COVID-19, the health care sector, especially biotechnology is taking a leading role in providing solutions.

“The outlook for investing here is positive with impending drug launches, cost-cutting efforts, an ageing population, increasing health care spending, increased merger and acquisition activity as well as potential expansion into emerging markets.”

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