Global X ETFs on Tuesday launched the Global X Genomics & Biotechnology ETF (GNOM) that focuses on a fast-growing part of the healthcare sector.

The fund’s underlying index contains companies classified to be in the healthcare universe by data provider FactSet. The index provider, Solactive, then uses a proprietary natural language processing algorithm to identify and rank companies with direct exposure to the genomics industry based on disclosures, regulatory filings, earnings transcripts and the like.

The highest-ranked companies get at least half of their revenue, operating income or assets from one or more of the following activities: gene editing; genomic sequencing; genetic medicine/therapies; computational genomics and genetic diagnostics; and biotechnology.

The end result is a modified market cap-weighted index that’s reconstituted and re-weighted semi-annually. The fund’s expense ratio is 0.68 percent.


ETFs devoted to biotech, genomics and related fields have been on fire this year. Then again, they sank like stones in last year’s fourth quarter. But on the whole, the business of genomic science seems poised for long-term growth.

The Global X Genomics & Biotechnology ETF is the company’s 13th product in its thematic growth suite.