IBBJ launched on August 3, 2020.
The value of the global pharmaceutical market rose from about US$390 billion in 2001, to about US$1.25 trillion at the end of 2019. Whether for cancer research, or a vaccine, or treatment for Covid-19, we believe the strong demand side continues to combine with government regulation and policies prioritizing these sectors.
Small-cap biotech companies have the potential advantage of a Food and Drug Administration more receptive to new cutting-edge and rare-disease therapies. They are also strengthened by increased patient lobbying and greater willingness by insurers to pay for treatments. There is also the considerable merger-and-acquisition potential among junior biotechs, and their relative insulation from economic instability as R&D (rather than sales) determines their value.
IBBJ can be purchased through most self-directed broker dealers, or a financial advisor who you may already be working with.
IBBJ’s expense ratio is 0.45%
IBBJ is traded on the New York Stock Exchange
IBBJ seeks to track the performance, before fees and expenses, of the Nasdaq Junior Biotechnology Index. The Index was established in 2020 and is owned by Nasdaq Global Indexes.
IBBJ zones in on the small cap companies (less than $5 bn market capitalization) listed on the Nasdaq Stock Market® and classified as either biotechnology or pharmaceutical according to the Industry Classification Benchmark (ICB). These are companies engaged in biotech research and development, the sale or licensing of biological substances for the purposes of drug discovery and diagnostic development; and pharmaceutical manufacturers of prescription or over-the counter drugs, including vaccines and development and manufacturing companies.