Daily ETF Watch: Generic Drugs Fund Planned

Van Eck’s Market Vectors arm has filed for an ETF that will target a specific slice of the pharmaceuticals market. The Market Vectors Generic Drugs ETF (GNRX) will list on the Nasdaq stock market.

The fund’s underlying index includes companies that have a significant focus on the generic drug industry, though the prospectus neither provide specific parameters nor explaind how index constituents are selected from the universe. However, it makes clear that the index will cover companies that produce pharmaceuticals that are virtually the same as existing, brand-name drugs and treatments.

Indxx, the index provider, will perform research and analysis based on public information to determine which companies qualify for inclusion. The prospectus notes that the index can include small- and midcap firms as well as stocks of non-U.S. companies.

As of the end of July, the index had 82 constituent companies.

Although there are quite a few existing ETFs covering the pharmaceuticals and biotechnology space, this would be the first ETF to cover generic drug companies.

The filing did not include an expense ratio.

Contact Heather Bell at [email protected].