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In line with anniversary, CHNA ETF completes its semi-annual rebalance
The Loncar China BioPharma ETF (Nasdaq: CHNA) today celebrates one year of trading on the Nasdaq in the United States. The fund gives investors exposure to 29 companies at the heart of China’s biopharmaceutical transformation.
Biopharma is a focus of China as it seeks to shift its economy toward innovation and become a global leader in world-class science and medicine. China has a large pool of talent in life sciences, has harmonized its drug regulatory agency with international standards and is adding innovative drugs to its national reimbursement list at an expedited pace.
The CHNA ETF launched in an effort to get ahead of this trend and aims to help investors capture leaders in the space through the convenience of one security that trades in the United States. It is based on the Loncar China BioPharma Index, which was developed by biotechnology investor and Loncar Investments CEO Brad Loncar.
“China’s future is rooted in innovation,” says Loncar. “We believe investing in medicine and the scientific revolution within China is a compelling way to harness and capitalize on China’s new and growing economy. The country’s commitment to life sciences and its ability to be a major player in the industry is of global significance and this has been reinforced by the progress seen over the last year.”
A new rule implemented by the Hong Kong Stock Exchange allows pre-revenue biotech companies to list publicly for the first time. With this in mind, the CHNA ETF held its most recent semi-annual rebalance on Aug. 12 and added three companies that recently had initial public offerings in Hong Kong to the fund: CanSino Biologics (HKEX: 6185), Hansoh Pharmaceutical Group (HKEX: 3692) and Viva Biotech (HKEX: 1873). This now makes a total of six life sciences companies held by CHNA that are newly listed in Hong Kong over the last year. Click here to see all holdings of the CHNA ETF.
For more information and to read Brad Loncar’s commentary, CEO interviews and other exclusive research, please visit www.loncarfunds.com. Visitors can sign up to receive email alerts at the bottom of any webpage.
About Exchange Traded Concepts (ETC): ETC is a private-label ETF advisor with passive and active exemptive relief from the Securities and Exchange Commission (SEC) to launch both domestic and international equity exchange traded funds under the Investment Company Act of 1940. For more information, please go to www.exchangetradedconcepts.com.
About Loncar Investments: Loncar Investments, LLC is committed to making the biotechnology space more approachable to a wider range of investors. It incorporates extensive research into biotech companies and technologies to develop stock market indexes that are focused on precise investment opportunities.
Opinions expressed are those of ETC and Loncar Investments are subject to change, not guaranteed, and should not be considered investment advice.
Investing involves risk; Principal loss is possible. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The biopharmaceutical industry in China is strictly regulated and changes in such regulations, including banning or limiting certain products, may have a material adverse effect on the operations, revenues, and profitability of Biopharma Companies. The laws and regulations applicable to the process of administrative approval of medicine and its production in China require entities producing biopharma products to comply strictly with certain standards and specifications promulgated by the government. To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, such as China, it is more likely to be impacted by events or conditions affecting that country or region. A significant portion of the Fund's assets will be invested in the biotechnology and pharmaceutical industries, which expose the Fund to the risks of the following sector. Companies in the health care sector are subject to extensive government regulation. The costs associated with developing new drugs can be significant, and the results are unpredictable. Newly developed drugs may be susceptible to product obsolescence due to intense competition from new products and less costly generic products. The process for obtaining regulatory approval by the U.S. Food and Drug Administration or other governmental regulatory authorities is long and costly and there can be no assurance that the necessary approvals will be obtained or maintained. The values of many companies in the health care sector may be significantly affected by such things as the expiration of patents or the loss of, or the inability to enforce, intellectual property rights. The Fund may invest in foreign securities, which involve political, economic, currency risk, greater volatility, and differences in accounting methods. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the investment. The Fund is non-diversified meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund invests in smaller companies which may have more limited liquidity and greater volatility compared to larger companies. The Fund is not actively managed and may be affected by a general decline in market segments related to the index. The fund invests in securities included in, or representative of securities included in, the index, regardless of their investment merits. The performance of the fund may diverge from that of the Index and may experience tracking error to a greater extent than a fund that seeks to replicate an index.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the investment company, and may be obtained by calling 800.617.0004 or visiting www.loncarfunds.com. Read it carefully before investing.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
The Loncar China BioPharma Index is an index of 29 securities that have a strategic focus on developing China’s biopharmaceutical industry. Quotes for the index can be found under the symbol “LCHINA” on the Bloomberg Professional service and other financial data providers.
The Hong Kong Stock Exchange (HKEX) is the primary stock exchange in the Hong Kong Special Administrative Region of China. Nasdaq is one of the primary stock exchanges in the United States.
One may not directly invest in an index.
The SEC does not approve or disapprove of any investment. (www.sec.gov).
Exchange Traded Concepts, LLC serves as the investment advisor to the Fund. The Loncar China BioPharma ETF is distributed by Quasar Distributors, LLC, which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Gregory FCA for Loncar Investments
Jill Fritz, 215-240-6398
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