Another coronavirus ETF
ETF Managers Group has come in first in the race to roll out a coronavirus ETF, with the ETFMG Treatments Testing and Advancements ETF (GERM) commencing trading this week.
The invests mostly in healthcare biotech companies. It aims to invest in those that develop vaccines, and in those that produce tests for vaccines. Companies are identified based on revenue purity and stages of drug development.
Like a lot of thematic funds, the fund uses funky wedding-cake style weighting system. The weighting system is designed to give medium-sized companies a bigger footprint. It allows companies with market caps under $15 billion to take up to 6% of the index.
Large caps, i.e. those with market caps $15B-plus, get equally weighted with their collective weights not allowed to take more than 10% of the index.
The fund charges of 0.68%.
Quite possibly the ticker for 2020