Australia Cured

Australia

ETF Securities lists biotech ETF

Australian issuer ETF Securities is listing a new biotech ETF, the first biotech ETF available in Australia. The ETFS S&P Biotech ETF (CURE) will track the S&P Biotechnology Select Industry Index, which is the same index tracked by State Street’s $4.5bn XBI in the US.

CURE picks biotech companies from the US healthcare sector; biotech makes up roughly one-fifth of the US healthcare industry. The index then equally weights the companies, which reduces single name risk and creates a tilt towards small and micro caps. The fund is Australia domiciled and will charge 0.45%.

Analysis – no securities lending

While State Street’s US-listed XBI tends to beat its index due to securities lending revenue, we understand that ETF Securities has no intention at this stage to lend out the underlying stocks. Australia’s ETF market is unlike the US and Europe in that most ETFs do not engage in securities lending.

 

Cross listings

Switzerland

Lyxor FTSE EPRA/NAREIT Global Developed UCITS ETF (LYMWE)