CURE

ETFS S&P Biotech ETF
ISIN AU0000028110

Efficient access to US biotechnology

ETFS S&P Biotech ETF (ASX Code: CURE) offers investors exposure to US biotechnology companies. These are companies are engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Examples include the development of immunotherapy treatments and vaccines to treat human diseases.

About CURE

CURE aims to provide investors with a return that (before fees and expenses) tracks the performance of the S&P Biotechnology Select Industry Index. CURE uses a full-replication strategy to track the index, meaning that it holds all of the shares that make up the index. It is equal weighted, meaning each holding makes up the same portion of the portfolio and therefore contributes equally to overall performance.

To be eligible for inclusion in the index, companies must be part of the Biotechnology sub-industry of the Health Care sector and meet minimum market capitalisation and liquidity requirements.

Why consider CURE?

  • Simple, low cost exposure to the biotechnology sub-industry.

  • While Australian investors can readily access biotechnology companies such as CSL Ltd, the US market plays a leading role in innovation in part due to the lucrative nature of the US patent system.

  • An investment in a broad biotechnology portfolio provides exposure not only to medical advances, but also to potential corporate activity in the sector.

  • Liquid and transparent.

FAQs

What is biotechnology?

Biotechnology includes companies primarily engaged in the research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. It includes companies specialising in protein-based therapeutics to treat human diseases. It excludes companies manufacturing products using biotechnology but without a health care application. Biotechnology is a sub-industry of the Health Care sector.

How does biotechnology differ from healthcare?

Biotechnology is a sub-industry within the Health Care sector.

The Health Care sector refers to all those industries involved in providing goods and services to manage the health needs of individuals and populations. There are two main groupings within the healthcare sector according to the Global Industry Classification Standards (GICS) including:

  1. Healthcare Equipment and Services

  2. Pharmaceuticals, Biotechnology and Life Sciences.

How are companies in CURE weighted?

Companies in CURE are equally weighted, meaning each holding makes up the same portion of the portfolio at each quarterly rebalance and therefore contributes equally to overall performance.

The choice of an equal weighting scheme provides investors exposure to the overall sector and allows all stocks to contribute equally to returns. Large-cap stocks do not dominate as they do where holdings are weighted by market capitalisation.

Why use an ETF for biotechnology exposure?

While biotechnology can be a lucrative space, it can also be high risk. The drug development process is very lengthy with high failure rates and it is an area that is sensitive to government policy. Using an ETF like CURE not only spreads the risk over many biotechnology companies but reduces single stock risk further by using an equal weight method.

CURE enables investors to access the growth in the US biotechnology sector, without having to pick individual winners.

How can you use CURE in a portfolio?

CURE can be used as a core exposure to the global healthcare sector and can aid portfolio sector diversification via investment in a sector that is underrepresented in the Australian market.

CURE may also be used as a tool for expressing long-term strategic or short-term tactical views on the biotechnology sub-industry.

For those using a core-satellite investment approach, CURE can be used as either a core or satellite holding.

Insights
ETF Securities Partner Series: Beyond healthcare - the future of biotechnology
Product Video: ETFS S&P Biotech ETF
Product Information
NAV Information
NAV/Unit (A$)67.2383
Date (NAV)27 Nov 2020
Currency (NAV)AUD
Shares outstanding421,947
AUM (A$)28,370,978.52
Product Information
Fund inception date08 Nov 2018
Management Costs (% p.a.)0.45
Maximum cost recoveries (% p.a.)0.00
Distribution FrequencyAnnually
Currency HedgedNo
DomicileAustralia
Legal FormManaged Investment Scheme
SMSF EligibleYes
Trading Information
Symbols and Trading Hours
ASX CodeCURE
Bloomberg CodeCURE AU Equity
ISINAU0000028110
SEDOLBGYB2K4
IRESSCURE.AXW
Trading hours10:00AM – 4:00PM
Trade Online
Management & Administration
IssuerETFS Management (AUS) Limited
CustodianJPMorgan Chase Bank N.A. (Sydney Branch)
RegistrarComputershare Investor Services (Jersey) Ltd
Benchmark Information
BenchmarkS&P Biotechnology Select Industry Index
ProviderS&P Indices
TickerSPSIBIN
Allocation
Performance
Distributions
Recent Distribution
Announcement date24 Jun 2020
Ex-date30 Jun 2020
Record date1 Jul 2020
Payment date15 Jul 2020
Distribution per unit
(A$ cents)
675.621567
12-month yield10.05%
12-month franking level0.00%
Ex-date
Record date
Payment date
Distribution (A$ cents)
Franking level
30 Jun 202001 Jul 202015 Jul 2020675.6215670.0000%
28 Jun 201901 Jul 201915 Jul 2019117.3883500.0000%
Announcements

There are no announcements to display.

Resources