ETF Securities has received an “investment grade” rating for its CURE ETF from ratings firm Lonsec.
CURE began trading on the Australian Securities Exchange (ASX) in November last year and replicated the S&P Biotechnology Select Industry Index, which achieved annual growth of almost 22 per cent over the last five years.
The Lonsec product review had described the fund as: “the only ETF of its kind to provide a pure US Biotechnology thematic exposure on the ASX”. Lonsec believes the Fund provided investors with an efficient and relatively transparent means to gain an economic interest to the biotechnology market in the US.
Kris Walesby, head of ETF Securities Australia, said the Lonsec rating would provide local investors with increased confidence they had broader options than the Australian market.
“When it comes to a large universe of healthcare biotech stocks, the US is where you need to look for the best chance of ground-breaking developments and consequent investment returns,” Walesby said.