Junior Biotech ETF Debuts

New fund invests in small cap biotechnology stocks. 

Reviewed by: Heather Bell
Edited by: Heather Bell

Today, Defiance ETFs launched a third ETF, this one with a focus on small cap biotechnology companies. The Defiance Nasdaq Junior Biotechnology ETF (IBBJ) tracks an index of roughly 200 U.S. biotech companies that fall within the bottom 10% of the Nasdaq Global Index in terms of size.

The fund comes with a expense ratio of 0.45% and lists on the Nasdaq stock exchange.

“At Defiance, we believe in providing the next generation of investors with targeted exposure to disruptive themes. IBBJ does just that, offering exposure to the junior disruptors in the biotech space, and allowing investors to express either a short- or long-term view,” said Defiance ETFs CEO Matt Bielski.

The underlying index primarily covers companies operating in the genomics, DNA technology, genetic engineering and molecular biology industries. Eligible companies must meet minimum size and liquidity requirements. The index is weighted by market capitalization and rebalanced and reconstituted twice a year, the prospectus says.

The largest biotech ETF currently trading in the U.S. is the nearly $10 billion iShares NASDAQ Biotechnology ETF (IBB), which covers large cap stocks and charges an expense ratio of 0.46%.

Contact Heather Bell at [email protected]


Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.