Today, Simplify ETFs launched an actively managed health care ETF that donates its net profits in the form of its annual management fee to the well-known Susan G. Komen breast cancer foundation, one of the largest charities dedicated to eradicating breast cancer. The Simplify Health Care ETF (PINK) is one of a handful of actively managed health care ETFs trading in the U.S.
PINK comes with an expense ratio of 0.50% and lists on the NYSE Arca.
Simplify's Chief Revenue Officer Brian Kelleher says the choice of which charity to select was fairly clear, as many of the staff at Simplify have had their lives touched by breast cancer either through loved ones who have had it or surviving it themselves.
The fund is managed by hedge fund investor Michael Taylor, an alum of Citadel who has a background in managing health care portfolios. He will take a bottom-up, fundamentally driven approach to select the fund’s portfolio.
In that process, the fund manager can take into account a wide range of criteria, such as market leadership, research and development, product innovation, financial performance, corporate governance and valuation, according to its prospectus, which says that the portfolio can switch to a value-driven approach when the market seems overpriced.
The document further notes that the Komen Foundation has no influence over the management of the fund, which focuses on the broad health care space with the goal of investing in companies taking a disruptive and innovative approach to health care. According to a fact sheet from the issuer, the focus is on companies offering new and effective solutions such as gene therapies and biotech solutions and those that are helping to reduce costs and improve quality within the health care system.
While it launched with 51 holdings, the fund’s mandate allows it to expand to up to 100 securities. The top holdings in the initial portfolio include Johnson & Johnson (6.58%), United Health Group (5.76%) and Medtronic (5.32%).
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Contact Heather Bell at [email protected]