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2 Genomics Focused ETFs to Know About
Gain exposure to companies leading the genomics field
Genomics is a biology field that focuses on the structure, function, evolution, mapping, and editing of genomes. A genome is all the genetic material of an organism, which includes DNA.
Why does genomics matter? It boils down to leading biotechnology companies developing cost-effective ways for the genes of organisms to be editable. With gene editing, genes that cause diseases and cancers can be edited out of a person’s DNA, reducing any future health risks.
Gene editing can be seen as an issue when it comes to ethics, and the long-term safety of it is still questionable. On the flip side, there are companies right now that are revolutionizing genomics, and many of them can be found in the following 2 ETFs:
1. Global X Genomics & Biotechnology ETF (GNOM)
2. ARK Genomic Revolution ETF (ARKG)
1. Global X Genomics & Biotechnology ETF (GNOM)
GNOM is an ETF that seeks to track the performance of the Solactive Genomics Index. The Solactive Genomics Index is an index designed to provide exposure to exchange-listed companies that are positioned to benefit from further advances in the field of genomic science and biotechnology. Companies in GNOM include CRISPR Therapeutics, Natera, Ultragenyx Pharmaceutical, and Editas Medicine.
As of January 27th, 2021, GNOM has a price of $24.57 and an expense ratio of 0.50%. Since its inception on April 5th, 2019, GNOM has provided a total return of approximately 64% and an average annual total return of approximately 32%.
2. ARK Genomic Revolution ETF (ARKG)
ARKG is an actively-managed ETF that invests in domestic and foreign equity securities of companies across multiple sectors, including healthcare, information technology, materials, energy, and consumer discretionary, that are relevant to the fund’s investment theme of the genomics revolution. Companies in ARK include CRISPR Therapeutics, Arcturus Therapeutics, Invitae, and Pacific Biosciences of California.
As of January 27th, 2021, ARKG has a price of $100.71 and an expense ratio of 0.75%. Since its inception on October 30th, 2014, ARKG has provided a total return of approximately 437% and an average annual total return of approximately 31%.
As you can see, both GNOM and ARKG provide exposure to publicly-traded companies that have been performing well and are revolutionizing genomics. It is important to remember that past performance is not guaranteed, but it is hard to believe that the performance of these 2 ETFs will slow down unless there is major federal government regulation that stops companies from continuing to do genomics research and clinical trials. Remember to do your research and due diligence if you are looking to invest in either ETF.
