NEW YORK, June 16, 2015 (GLOBE NEWSWIRE) -- 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. Both funds have increased in number of holdings, and have rebalanced to equally weight position sizes.
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 segments of the biotechnology sector while diversifying some of the risks associated with any one company.
The BBC fund has increased its number of holdings to 90 stocks (previously 67), with a weighted average capitalization of approximately $1.5 billion (previously $2.1 billion). Thirty-one stocks have been added by meeting the inclusion criteria, seven stocks have moved to the BBP fund upon transitioning to the Products stage, and one stock has been removed due to signing a definitive merger agreement.
The BBP fund has increased its number of holdings to 39 stocks (previously 33), with a weighted average market cap of $18 billion (previously $18 billion). Seven stocks have moved from the BBC fund upon transitioning to the Products stage, and one stock has moved to the BBC fund upon transitioning back to the Clinical Trials stage.
"The high volume of changes in our rules-based BioShares portfolios reflects how quickly the biotechnology market is evolving," said LifeSci Index Partners co-founder, Paul Yook. "Of the 31 new companies added to BBC, 12 have completed IPOs since 2014, and 16 focus in the cancer and immuno-oncology fields. "Record new equity issuance volume in the biotechnology sector, as well as optimism surrounding new clinical stage treatments for various cancers utilizing the human body's own immune system, have been among the key drivers of the sector's continued growth.
As companies successfully complete clinical trials and transition to the commercial stage, they can move to the BioShares Products fund (BBP), when sales ramp and establishing profitability becomes more important to investors. "Robust M&A activity in the biotech sector also continues to be a dominant theme, with Product stage companies being particularly attractive targets to larger pharmaceutical companies seeking higher growth," stated Andrew McDonald, Ph.D., CEO of LifeSci Index Partners. In the first half of 2015, three companies in the BBP fund were acquired, including NPS Pharmaceuticals, Pharmacyclics and Hyperion.
Summary of Portfolio Changes
BBC Additions: ADXS, AFMD, AGEN, ARWR, ATRA, BLCM, CNCE, CRIS, DRNA, FGEN, GALE, IMDZ, IMGN, JUNO, LBIO, LJPC, MRTX, ONCE, ONTY, PRTK, QURE, RDUS, RIGL, RXDX, SRNE, THLD, TKMR, TRVN, VSTM, XNCR, ZFGN
BBC Deletions: ENTA, GEVA, KYTH, MNTA, OMER, OREX, RTRX, XNPT
BBP Additions: ENTA, KYTH, MNTA, OMER, OREX, RTRX, XNPT
BBP Deletions: IMGN
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.
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.
CONTACT: Joe Anthony Gregory FCA 610-228-2095 firstname.lastname@example.org
Source:LifeSci Index Partners