New Listing

VanEck launches genomics and healthcare ETF

CURE is labelled Article 9 under SFDR

Theo Andrew

Martijn Rozemuller

VanEck has expanded its thematic range with the launch of a geonomics and healthcare ETF.

The VanEck Geonomics and Healthcare Innovators UCITS ETF (CURE) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.35%.

CURE will track the MVIS Global Future Healthcare ESG index which currently offers exposure to 61 genomic and digital healthcare companies including those looking to treat conditions such as cancer and conditions related to aging as well as digital service providers delivering easy access to doctors.

The index also has “pure-play” exposure to companies earning at least half their revenues from geonomics or digital healthcare-related industries.

The top holdings of the ETF include Vertex Pharmaceuticals (8.3%) and Regeneron Pharmaceuticals (7.7%), although the index states each constituent should be capped at 8%.

Moderna and Biontech, the two companies to develop the first COVID-19 vaccines, also make the top 10 holdings, accounting for 6.6% and 4.6% of the index, respectively.

The ETF is heavily weighted towards US equities, accounting for 79.7% of the index, followed by Germany (4.6%) and Japan (3.8%).

Companies that violate social norms, derive revenues from controversial weapons, or participate in fossil fuel sectors, nuclear power, civilian firearms or tobacco are screened out of the ETF.

CURE is labelled Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

Martijn Rozemuller (pictured), CEO of VanEck Europe, said: "Genetic treatments, which have once been considered experimental and expensive, are becoming more affordable and common. 

“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.”

The underlying index of the ETF is reviewed quarterly, with eligible constituents requiring a market cap of at least $150m, a three-month average daily trading volume of $1m and at least 250,000 shares traded per month over the past six months.

In June, VanEck launched of two thematic ETFs, the VanEck Sustainable Future of Food UCITS ETF (VEGI) and VanEck Space Innovators UCITS ETF (JEDI).

The asset manager has been focusing its efforts on crypto exchange-traded notes (ETNs) this year, having launched FTX, algorand, terra, chainlink, smart contracts and ‘crypto leaders’ strategies.

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