Biotech ETFs Get More Refined With Debut Of Cancer Immunotherapy Fund

Last year, a new crop of biotechnology exchanged traded funds brought refined, laser-like focus to the fast-growing market segment. Biotech ETFs making their debuts in late 2014 include funds devoted exclusively to companies with products in specific stages of clinical trials or only to those companies that have received at least one FDA approval.

Add the Loncar Cancer Immunotherapy ETF CNCR to list of new, focused biotech ETFs. The Loncar Cancer Immunotherapy ETF, which debuted today, is the first ETF exclusively devoted to cancer immunotherapy. Exchange Traded Concepts, LLC (ETC), Loncar Investments, ISE ETF Ventures, and Amplify Development LLC partnered to bring the Loncar Cancer Immunotherapy ETF to market.

The new ETF is the brainchild of Brad Loncar, a Kansas-based private investor that manages a family fund. On his blog, Loncar said the fund usually holds about 40 stocks, about half of which are biotech and health care names.

In April, Loncar launched the Loncar Cancer Immunotherapy Index (LCINDX), the first dedicated cancer immunotherapy benchmark. That index is an “equal-weighted index of 25 top immunotherapy companies rebalanced and reconstituted on a semi-annual basis,” according to Loncar. The index is rebalanced on a semiannual basis. 

That index serves as the benchmark for the Loncar Cancer Immunotherapy ETF and today the index holds 30 stocks, according to issuer data. Seven of those stocks are considered large-cap health care names, such as Bristol-Myers Squibb BMY and Dow component Merck & Co. MRK while the other 23 components are biotech growth stocks.

CNCR's top 10 holdings include Incyte Corp. INCY, Celgene Corp. CELG, Dow component Pfizer Inc. PFE and Amgen Inc. AMGN.

“Immunotherapy is changing the way many cancers are being treated,” said Loncar in a statement. “This innovative field within biotechnology is expected to become the foundational treatment for cancer over the next ten years. We think it is important to give investors a benchmark to track the progress of this growing biotechnology sector, which over time will likely continue to have a positive impact on society.” 

CNCR's annual expense ratio is 0.79 percent, or $79 per $10,000 invested.