BioShares Biotechnology ETFs Complete Semi-Annual Rebalance and Recomposition; Celebrate 1-Year Anniversary
(Nasdaq: BBC, BBP)
BioShares Biotechnology Funds Celebrate 1-Year Anniversary
New York, December 16, 2015 — LifeSci Index Partners, LLC (“LSIP”), a New York City-based investment advisor and index provider, today announced the completion of its semi-annual rebalancing and recomposition for its BioShares Biotechnology exchange-traded funds (ETFs), which trade under the symbols BBC and BBP on Nasdaq. These passively-managed funds are designed to track their respective, rules-based indexes.
The BioShares Biotechnology Funds are the only ETFs to separate Clinical Trials stage companies and Products stage companies into two distinct funds. The BioShares Biotechnology Clinical Trial Fund (BBC) and BioShares Biotechnology Product Fund (BBP) offer investors exposure to these two distinct segments of the biotechnology sector while diversifying some of the risks associated with any single company.
In addition, BBC and BBP are the only ETFs to offer pure biotechnology exposure without allocations to specialty pharmaceutical, medical device and diagnostics, and generic drug companies.
The BBC fund continues to hold 89 stocks, with a weighted average market capitalization of $1.2 billion (previously $1.3 billion). 16 stocks have been added by meeting the inclusion criteria. 15 stocks have been removed as they no longer meet the fund’s inclusion criteria, and one stock has been removed after signing a definitive merger agreement.
The BBP fund has decreased its number of holdings to 35 stocks (previously 38), with a weighted average market cap of $18 billion (previously $18 billion). Of particular note, there were no stocks that transitioned from the Clinical stage to the Products stage during this six-month period.
“Our rules-driven BioShares portfolios continue to evolve in response to recent market volatility and the dynamic activity in the biotechnology capital markets,” said LifeSci Index Partners founder Paul Yook. “In the BBC clinical trials fund, 9 companies with IPOs in 2015 have been added, with exciting clinical trials in areas such as peanut allergy, Alzheimer’s, sickle cell anemia and various approaches to cancer treatment.” In addition, a handful of companies experienced clinical trial failures and the rules-driven BioShares portfolios reacted by culling these holdings. “The balance sheets of the BBC stocks are strong” said Yook, “with more than $20 billion of cash across the 89 portfolio companies, and the BBP components offers strong revenue growth opportunity with median sales growth of 23% projected in 2016 according to Bloomberg estimates.”
The BioShares funds are also celebrating their one-year anniversary, as they share the inception date of December 16, 2014. “In our first year, assets under management have grown to more than $50 million,” stated Andrew McDonald, Ph.D., CEO of LifeSci Index Partners. “We are thrilled to partner with investors in our innovative funds – the only ETFs that offer pure exposure to biotechnology companies developing and marketing the next generation of breakthrough, life saving medicines.”
Summary of Portfolio Changes
BBC Additions: ADAP, ADRO, AIMT, AKBA, ARDX, AXON, BPMC, CARA, CYTK, DNAI, GBT, LOXO, MCRB, NK, TSRO, VTAE
BBC Deletions: AAVL, AFMD, CRIS, CTIC, DRNA, ECYT, GALE, IMDZ, RIGL, SNTA, THLD, TKAI, VSTM, XOMA, ZFGN, ZSPH
BBP Additions: None
BBP Deletions: DYAX, MNKD, OREX
ABOUT LIFESCI INDEX PARTNERS, LLC
LifeSci Index Partners, LLC is an index provider of biotechnology-focused stock market indices and also serves as the investment sub-advisor for the BioShares exchange traded funds. The principals of our firm are also founders of and/or affiliated with LifeSci Advisors, LLC, a unique investor relations consultancy founded to provide companies in the life sciences a comprehensive solution to investor communications and outreach. For more information, please visit www.bioshares.com and www.lifesciindex.com.
DISCLOSURE
Carefully consider the respective investment objectives, risk factors and charges and expenses of the BioShares™ Biotechnology Clinical Trials Fund and the BioShares™ Biotechnology Products Fund (the “Funds”) before investing. This and additional information can be found in the Funds’ prospectuses, which can be obtained by calling 1-(888) 383-4184 or by visiting www.bioshares.com. Read the prospectuses carefully before investing.
An investment in the Funds is subject to investment risks; therefore you may lose money by investing in the Funds. There can be no assurance that the Funds will be successful in meeting their investment objectives.
Shares of any ETF are bought and sold at market price (not NAV) and may trade at a premium or discount to their NAV in the secondary market. Shares are not individually redeemed from the Fund and Brokerage commissions will reduce returns.
The principal risks of investing in each Fund include biotechnology sector, market, index tracking, concentration, non-diversification and new adviser and sub-adviser risks, as well as fluctuations in net asset value. Funds that concentrate investments in a single sector will be more susceptible to factors affecting that sector and more volatile than funds that invest in many different sectors. The biotechnology sector in particular presents many investment risks including, but not limited to, heavy spending in research and development, government regulation, clinical trial risk, intellectual property risk, technological change and obsolescence, competition, product liability litigation and reimbursement risk.
BioShares™ Biotechnology Clinical Trials Fund may be subject to greater sector risk than a more broad-based biotechnology fund because it focuses on a narrower category of the biotechnology sector consisting of issuers with a primary product offering or product candidate that is in a Phase 1, Phase 2 or Phase 3 clinical trial stage of development.
BioShares™ Biotechnology Products Fund may be subject to greater sector risk than a more broad-based biotechnology fund because it focuses on a narrower category of the biotechnology sector consisting of issuers with a primary product offering or product candidate that has received U.S. Food and Drug Administration approval.
Risks associated with equally-weighted indexes. Equal weighting is a method of weighting index stocks whereby the same exposure is provided to both the smallest and largest companies included in the Index. Because the indexes use equal weighting, the Funds will likely have greater exposure to the small and mid cap stocks in its portfolio than it would if it used a market capitalization weighting.
The information presented here is for informational purposes only. It was prepared on information and sources that we believe to be reliable, but we make no representations or guarantees as to the accuracy or the completeness of the information contained herein.
This information is not intended to be individual or personalized investment or tax advice. Please consult a financial advisor or tax professional for more information regarding your tax situation.
LifeSci Index Partners, LLC is the Index Provider and Indxx is the Index Calculation Agent. Etfis Capital LLC serves as the investment advisor and LifeSci Index Partners, LLC serves as the sub-advisor to the Fund. The Fund is distributed by ETF Distributors LLC, an affiliate of Etfis Capital LLC.
