BlackRock launches neuroscience-focused healthcare ETF

Sep 1st, 2022 | By | Category: Equities

BlackRock has launched a new thematic equity ETF in the US targeting healthcare companies with significant operations in the field of neuroscience.

BlackRock launches neuroscience-focused healthcare ETF

The ETF is the first to target healthcare companies primarily operating in the field of neuroscience.

The iShares Neuroscience and Healthcare ETF (IBRN US) has been listed on NYSE Arca with an expense ratio of 0.47%.

The fund is linked to the NYSE FactSet Global Neuro Biopharma and MedTech Index which selects its constituents from an initial universe of developed and emerging market stocks with market capitalizations greater than $100 million and average daily trading volumes above $1m.

The methodology screens for companies deriving at least 50% of their revenue from business activities linked to the neurology biopharmaceuticals or neurological devices industries, as determined by the FactSet Revere Business Industry Classification System.

Index provider ICE Data Indices seeks to exclude companies whose business description, trade names, or supply chain relationships indicate involvement with psychedelics or cannabis.

Constituents are weighted by float-adjusted market capitalization, and the index is rebalanced on a quarterly basis.

As of 25 August, stocks from the US accounted for approximately 90% of the ETF’s total exposure with minor allocations also to companies located in Switzerland, Belgium, South Korea, and Denmark.

Notable positions included Karuna Therapeutics (8.5%), Sarepta Therapeutics (5.4%), PTC Therapeutics (5.2%), Axonics (4.5%), Denali Therapeutics (4.2%), Neurocrine Biosciences (3.8%), and Jazz Pharmaceuticals (3.6%).

Distributions are made to investors on a semi-annual basis.

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