VanEck has unveiled Europe’s first ETF targeting companies involved in bionic engineering in healthcare, ETF Stream can reveal.
The VanEck Bionic Engineering UCITS ETF (CYBO) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.55%.
CYBO tracks the MVIS Global Bionic Healthcare ESG index which offers exposure to the 25 largest and most liquid companies involved in medical, dental or visual implants, bioprinting, prosthetics or organ and tissue preservation.
The ETF’s largest allocations include Dexcom, which produces glucose monitoring implants, Stryker, which manufactures orthopaedic and neurotechnology implants and Edwards Lifesciences, which specialises in artificial heart valves.
CYBO’s benchmark only captures companies with at least 50% revenue exposure to the target theme, with a market cap of more than $150m and a three-month average daily trading volume of $1m. Each security is capped at a 10% weighting.
The index also applies screens against companies that “very severely violate” UN Global Compact Principles, those deriving any revenue from controversial weapons and those deriving more than five percent of their revenues from thermal coal, fossil fuels, oil sands, nuclear power, civilian firearms, military equipment or tobacco.
Dominik Schmaus, product manager at VanEck Europe, told ETF Stream: “We wanted to build a sustainable strategy that captures a sector that helps society such as healthcare, and then look through a thematic lens at an area where technologies and procedures are fast-developing, in this case bionic engineering.
“As the technology develops, we expect the applications based on functions of the brain and nerve systems to become more prominent.”
Martijn Rozemuller (pictured), CEO of VanEck Europe, added: “The proportion of the elderly population is rising and with it the demand for technical solutions such as hearing and visual aids, pacemakers, artificial joints and the like that improve the quality of life in old age.”
CYBO becomes VanEck’s second launch targeting the healthcare sector in recent months after it debuted the VanEck Genomics and Healthcare Innovators UCITS ETF (CURE) in September.
Elsewhere, the firm has continued its focus on impact themes with the launch of the VanEck Circular Economy UCITS ETF (REUS) in October and the VanEck Sustainable Future of Food UCITS ETF (VEGI) in June this year.