Frankfurt-based Solactive writes that the COVID-19 pandemic has put a strain on the global healthcare system.
“In the wake of its massive negative impacts, it has positively catalysed the development of new drugs and vaccines. The potential usage for mRNA-based pharmaceuticals, for instance, far exceeds its current application as an effective vaccine against SARS-COVID-19.
“Research predicts the global mRNA Vaccines and Therapeutics market to grow at a CAGR of around 13 per cent during 2021-2026.”
Horizons ETFs Management has launched the Horizons Global Vaccines and Infectious Diseases Index ETF, an ETF that provides global exposure to companies involved in vaccine development, diagnostics, and therapeutics. On the same day, the Canadian ETF provider also launched the Horizons North American Infrastructure Development Index ETF (BLDR), which builds on the surge in demand of North American infrastructure companies as the current US administration proposes a bill for an extensive trillion-dollar infrastructure programme.
Solactive writes that mRNA technology first originated in the late 60s of the previous century. Its mechanism bears vast potential for immunology, especially against infectious diseases and various types of cancer. Horizons ETFs’ HVAX ETF includes companies active in the development and production of vaccines, therapeutics, and diagnostics.
The Solactive Global Vaccines and Infectious Diseases Index serves as the underlying for HVAX. Its constituents are derived via Solactive’s proprietary natural language processing algorithm ARTIS. Using keywords that describe the index theme, ARTIS identifies companies that have or are expected to have significant exposure in the field of involvement in the development and production of vaccines, therapeutics, and diagnostics. For example, companies developing, manufacturing, and distributing healthcare products, specialising in vaccines and therapeutics are eligible for index inclusion. Furthermore, businesses researching novel prophylactics, therapeutics, and vaccines for the treatment and prevention of infectious diseases, including novel viruses and highly transmissible diseases, are included in the index composition.
The Horizons North American Infrastructure Development Index ETF tracks the Solactive North American Infrastructure Development Index. The index serves as a representation of companies that have involvement in building materials and equipment, as well as logistics, construction, and engineering services used for the development and maintenance of infrastructure projects.
To be included in the index universe, constituents must be headquartered in the US or Canada. Moreover, the index is composed of 50 securities classified in seven index categories, which are created using a common business industry classification system. The seven categories are: Transportation Infrastructure Construction, Transportation Operators, Telecommunication Infrastructure, Water and Energy Infrastructure, Infrastructure Materials and Components, Infrastructure Construction, and Construction Machinery. Within their respective index category, all eligible securities are ranked based on their share class market capitalisation in descending order.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “Thematic investing aims to enable investors to engage with long-term trends that are expected to add value to investment portfolios. Horizons ETFs’ new products are dedicated to leveraging on exactly this purpose. Both the vaccine producers and infrastructure businesses are promising industries due to their long-term orientation and innovation potential. We are happy that we were able to brace our relationship with Horizons ETFs again with these two new releases.”
Steve Hawkins, President and CEO at Horizons ETFs, says: “As Canada’s leading provider of thematic ETFs, we are proud to once again partner with Solactive AG to offer access to two of the most important themes of today. Thematic ETFs, like HVAX and BLDR, provide one-stop access with exposure to long-term trends with significant potential upside. There has never been an easier time to harness thematic ETFs and get exposure to the sectors driving the future forward. We are proud of the relationship we have built with Solactive AG and to have collaborated with them on these exciting thematic indices.”