Source, the provider of exchange traded products, has launched what it says is the first Europe listed ETF that will track the Nasdaq Biotechnology Index.
The Source Nasdaq Biotech Ucits ETF is denominated in dollars, domiciled in Ireland and listed in London, but registered for sale also in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden and Switzerland. It invests in a universe of biotech companies that has reached a market capitalisation value of over $950bn, with the relevant index reflecting the performance of over 100 companies listed on the Nasdaq stock market.
The companies range from large cap stock with global presence, to smaller companies focused on single treatments. The ETF aims to deliver the same total return of the index.
The decision to launch the ETF came in response to investor demand, Source CEO Ted Hood said: “While there are some large, actively managed biotech funds available to Europe investors, passive options are limited. There are several ETFs, including our own, tracking the US Health Care sector, but we see many investors looking for more focused biotech exposure.”