Today Van Eck’s Market Vectors arm is set to roll out the first ETF to cover the generic pharmaceuticals industry. The Market Vectors Generic Drugs ETF (GNRX) is listing on the Nasdaq exchange and tracks the Indxx Global Generics & New Pharma Index.
Companies included in the index must generate the majority of their revenues from generic drugs or must have the majority of their business in the space. The prospectus notes that eligible companies can be based in the U.S., other developed markets or emerging markets, and can fall into the small- and midcap size segments. As of the end of October, the index had 85 components, ranging in size from just under $1 billion to more than $24 billion.
There are currently four ETFs offering long, unleveraged exposure to the pharmaceuticals space, but all of them cover the broad category. At its launch, GNRX will be the only ETF to drill down to cover this subset of the pharmaceuticals industry.
The fund comes with a net expense ratio of 0.55%.
Contact Heather Bell at [email protected].