Aiming to get a slice of the action, Global X is listing its first biotech and genomics ETF, which will fit in with its broader thematic offering. The Global X Genomics & Biotechnology ETF (GNOM) will track a Solactive index made up of healthcare biotech and genomics companies from rich countries.
To qualify, companies must make 50% of their revenue or assets from genomics or biotech. To find companies fitting this criterion, Solactive uses a “proprietary natural language processing algorithm” on public documents like regulatory filings, earnings transcripts, etc. to see how directly exposed to genomics they are.
The highest ranking companies identified are then double-checked by Solactive to make sure they really are biotech and genomics companies.
The fund follows in the footsteps of ARK Invest, whose actively managed ARK Genomic Revolution ETF (ARKG) has raked in more than $250M assets since it listed back in 2014.