Investors were introduced to more than 180 new exchange-traded products in 2014, as well as a handful of ETF issuer newcomers. While the majority of new offerings offer more traditional investment objectives, there are a passel of funds that provide exposure to unique methodologies and hyper-targeted sectors.
Below, we highlight 10 of the newest, most intriguing funds on the market.
1. Medical Breakthroughs ETF (SBIO)
On New Year’s Eve, ALPS launched its Medical Breakthroughs ETF, which gives investors targeted exposure to a niche sector in the biotech and pharmaceuticals industries. The fund’s objective is to capture research and development opportunities in these fields. More specifically, SBIO’s underlying index is comprised of small- and mid-cap stocks of biotechnology and pharmaceutical companies that have one or more drugs in either Phase II or Phase III of U.S. Food and Drug Administration clinical trials.
The resulting portfolio consists of about 75 individual securities. Currently, the top three holdings are:
• Receptos Inc (RCPT)
• NPS Pharmaceuticals Inc (NPSP)
• Seattle Genetics Inc (SGEN)
2. BioShares Biotechnology Clinical Trials Fund (BBC)
In December 2014, LifeSci Index Partners made its debut in the ETF industry, launching two health and biotech funds. One of these funds is the BioShares Biotechnology Clinical Trials Fund, which like SBIO targets U.S.-listed biotechnology companies with a primary product offering that is in a Phase 1, Phase 2 or Phase 3 clinical trial stage of development.
BBC’s portfolio is comprised of 68 securities, featuring relatively younger, smaller companies that focus on testing their experimental drug candidates in human clinical trials. No single security accounts for more than 3.00% of the fund’s total assets, whereas SBIO’s top three holdings account for roughly 13%.