OKLAHOMA CITY--(BUSINESS WIRE)--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.