The Global X Genomics & Biotechnology ETF (GNOM ) is just over two months old, but this rookie ETF offers investors to some of the most compelling segments in the biotechnology arena.
New disruptive technologies are changing the way we interact with the world, providing growth opportunities for exchange traded fund investors whom are looking to diversify into these quickly developing segments.
GNOM tracks the Solactive Genomics Index and “seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology,” according to Global X.
GNOM tracks the convergence of tech and health care.
Go With GNOM ETF
Companies are only eligible for inclusion if they generate at least 50% of their revenues from genomics related business operations. The index is market cap weighted with a single security cap of 4.0% and floor of 0.3%. The ETF provides exposure to CRISPR, gene editing and therapeutics companies. CRISPR, in particular, is an area to watch.
“For the first time, astronauts used CRISPR/Cas9 technology to edit DNA in space. The purpose of the experiment at the International Space Station is to track how cells repair their DNA in such a demanding environment,” said Global X in a recent research note.
The experiment may sound far flung, but it has practical applications.
“The CRISPR-induced DNA lesions intends to induce targeted breaks in the yeast genome to mimic genetic damage caused by cosmic radiation, a serious risk facing space travelers,” said Global X. “Figuring out how to repair DNA from radiation damage could be quite useful, particularly for deep space travel, as astronauts are subject to about 30 times the radiation a human receives on earth.”
Moreover, the space experiment is another example of the rapidly evolving genomics market and related applications.
“This Genes in Space study is another example of the substantial growth rate of genomics experimentation, data, and technology, which is estimated to be growing at a faster pace than the Moore’s Law, i.e., the rule in the electronics world that says that the number of transistors on a microchip doubles every two years,” according to Global X.
GNOM is up 8.56% this month.
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