CHNA offers diversified exposure to leading
companies in China’s burgeoning BioPharma industry
Today, the Loncar China BioPharma ETF (Nasdaq: CHNA) begins
trading on the Nasdaq in the United States. The CHNA ETF seeks to
give investors access to China’s rapidly-developing
biopharmaceutical industry. It is based on the Loncar China
BioPharma Index, an innovative index developed by biotechnology
investor Brad Loncar.
Exchange Traded Concepts (ETC) partnered with Loncar Investments
on the successful launch of the fund. It invests in 28 companies,
22 of which are listed on the Hong Kong Stock Exchange and six of
which are listed on Nasdaq, offering investors distinct, global
exposure through the convenience of one security.
“China aims to become a leader in global medicine,” said Brad
Loncar, Chief Executive Officer of Loncar Investments. “Regulatory
reform and a new rule allowing pre-revenue biotech companies to
list on the Hong Kong Stock Exchange may signal a new era for
innovative drug development in the region. We think this is an
important trend in healthcare, as it has the potential to spur
growth and benefit patients worldwide.”
“We are proud to deliver another cutting-edge, biotech-focused
product to the market,” said J. Garrett Stevens, CEO of Exchange
Traded Concepts. “China’s goal of moving its life sciences industry
towards innovation is one of the most exciting themes within
biotechnology, and the Loncar China BioPharma ETF gives investors a
front row seat to this transformation.”
CHNA comes at an expense ratio of 0.79 percent. It joins the
Loncar Cancer Immunotherapy ETF (Nasdaq: CNCR) under the Loncar
Funds brand of innovative biotechnology-focused ETFs. For more
information about these products, please visit
http://www.loncarfunds.com.
About Exchange Traded Concepts: ETC is carving out a
niche as a portal to launch new, custom exchange-traded funds
efficiently and cost-effectively through a complete turnkey
solution. 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. Its first two
indexes are the Loncar Cancer Immunotherapy Sector Index (LCINDX)
and the Loncar China BioPharma Industry Index (LCHINA). The company
is principally owned by biotech investor and analyst Brad
Loncar.
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. CNCR
will invest in immunotherapy companies which are highly dependent
on the development, procurement and marketing of drugs and the
protection and exploitation of intellectual property rights. A
company's valuation can also be greatly affected if one of its
products is proven or alleged to be unsafe, ineffective or
unprofitable. The costs associated with developing new drugs can be
significant, and the results are unpredictable. 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 with be obtained and maintained. The Fund may invest in
foreign securities, which involve political, economic, currency
risk, greater volatility, and differences in accounting methods.
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.
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'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 Cancer Immunotherapy Sector Index is an index of 25
securities that have a strategic focus on the area of cancer
immunotherapy, or harnessing the immune system to fight cancer.
Quotes for the index can be found under the symbol “LCINDX” on the
Bloomberg Professional service and other financial data providers.
One may not directly invest in an index.
The Loncar China BioPharma Industry Index is an index of 28
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 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.
Diversification does not assure a profit nor protect against
loss in a declining market.
The SEC does not approve or disapprove of any investment.
(www.sec.gov).
Exchange Traded Concepts, LLC serves as the investment advisor
to the Funds. The Loncar China BioPharma ETF and the Loncar Cancer
Immunotherapy ETF are distributed by Quasar Distributors, LLC,
which is not affiliated with Exchange Traded Concepts, LLC or any
of its affiliates.
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version on businesswire.com: https://www.businesswire.com/news/home/20180815005020/en/
Gregory FCA for Loncar InvestmentsJill Tatios,
215-240-6398loncar@gregoryfca.com
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