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Spotlight on 4 thematic ETFs

Lex Hall  |  24 Jul 2019Text size  Decrease  Increase  |  
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As we explored in a previous article, in 2018, several names covering these technologies were launched, including the ETFS S&P Biotech ETF (CURE)VanEck Vectors China New Economy ETF (CNEW)BetaShares Global Robotics & Artificial Intelligent ETF (RBTZ), and the ETFS Battery Tech and Lithium (ACDC).

These four exchange-traded funds tap into key themes on the international investing landscape: biotech, China's new economy, AI and lithium. Here we explore, what they invest in and how they have performed against their relevant benchmark.

S&P Biotech ETF (CURE)

  • Total return since inception: 5.36pc
  • Inception date: 8 November 2018
  • Total return benchmark: 5.71pc

This ETF provides exposure to the US biotechnology sub-industry within the health care sector. The fund adopts an equally weighted strategy which gives higher exposure to small and mid-cap stocks held within the fund compared to market capitalisation-weighted approach. Its top holdings include Array Biopharma, which specialises in cancer treatments; Invitae, a leader in advanced medical genetics; Immunomedics, which develops treatments for cancer and autoimmune disorders; Sarepta, which focuses on treatments for rare and infectious diseases; and Bluebird Bio, a clinical-stage biotechnology company that develops gene therapies for severe genetic and rare diseases.

CURE Sector Exposure

CURE ETF

Fund as of 23 Jul 2019 | Category: Equity World Other as of 30 Jun 2019 | Sector data is based on the rescaled long position of the equity holdings. Source: Morningstar Premium

VanEck Vectors China New Economy ETF (CNEW)

  • Total return since inception: 29.39pc
  • Inception date: 8 November 2018
  • Total return benchmark: 30.16

CNEW gives investors a portfolio of the ‘most fundamentally sound companies in China having the best growth prospects in sectors making up “the New Economy”, namely technology, health care, consumer staples and consumer discretionary. Its top holdings include Wus Printed Circuit Kunsha, which makes, distributes and handles after-sale services of printed circuit boards; wine and spirit producers Shanxi Xinghua and Jiangsu King’s Luck Brewery; liqueur specialist Luzhou Laojiao; and Jiangsu Hengshun Vinegar, which produces and sells vinegar and other condiments.

CNEW Sector Exposure

CNEW ETF

Fund as of 23 Jul 2019 | Category: Equity Greater China as of 30 Jun 2019 | Sector data is based on the rescaled long position of the equity holdings. Source: Morningstar Premium

BetaShares Global Robotics & Artificial Intelligent ETF (RBTZ)

  • Total return since inception: -2.41pc
  • Inception date: 12 September 2018
  • Total return benchmark: -2.63

RBTZ provides access to the robotics and AI sectors through exposure to a portfolio of global companies involved in production or use of robotics and artificial intelligence products and services – including industrial robots, autonomous vehicles and applications of large-scale machine learning. Its holdings include semiconductor maker Nvidia; and Japanese names such as Mitsubishi Electric, a multinational electronics and electrical equipment maker; and Keyence, which develops and manufactures automation sensors, vision systems, and barcode readers. Other big names include US medical robotmaker Intuitive Surgical; and ABB, a Swiss-Swedish technology company, which spans electrification, industrial automation, motion, and robotics and discrete automation.

RBTZ Sector Exposure

RBTZ ETF

As of 30 Jun 2019 | Category: Equity World Large Blend | Sector data is based on the rescaled long position of the equity holdings. Source: Morningstar Premium

ETFS Battery Tech and Lithium (ACDC)

  • Total return since inception: -4.61
  • Inception date: 30 August 2018
  • Total benchmark -4.45pc

ACDC is Australia’s first ETF to provide exposure to the energy storage and production megatrend. ACDC provides investors with access to companies involved in battery technology and lithium mining. The index covers all electro-chemical storage, not just lithium, in order to capture the growth of the whole industry. ACDC is a global portfolio covering multiple regions and sectors and adopts an equal weight strategy. Holdings include Japanese names such as IT multinational NEC Corp, electronics giant Sony Corp and its Korean counterpart Samsung; electric vehicle maker Tesla; and FMC Corp, an American chemical manufacturer.

ACDC Sector Exposure

 

 ACDC ETF

Fund as of 23 Jul 2019 | Category: Equity World Large Blend as of 30 Jun 2019 | Sector data is based on the rescaled long position of the equity holdings. Source: Morningstar Premium

is content editor for Morningstar Australia

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