Global X S&P Biotech ETF (ASX: CURE)

The Global X S&P Biotech ETF (CURE) offers targeted access to the premier hub of global medical innovation, the United States biotechnology industry. Valued at over US$193 billion, this sector is nearly thirty times the size of its Australian counterpart, providing a scale of opportunity unavailable in the domestic market.

By tracking the S&P Biotechnology Select Industry Index, the fund invests in an equally weighted portfolio of small, mid, and large-capitalisation companies focused on genetic research, immunotherapy, and vaccine development.

These firms operate under the world-renowned FDA regulatory framework, which serves as a global benchmark for drug approval and commercialisation. CURE provides a strategic thematic tilt toward the long-term megatrend of advanced healthcare, allowing for significant diversification away from concentrated local holdings. It captures the growth potential of companies specialising in groundbreaking protein-based therapeutics and life-saving treatments for complex human diseases.

CURE offers investors exposure to US biotechnology stocks, across small-, mid- and large-capitalisation companies. CURE aims to provide investors with a return that, before fees and expenses, tracks the performance of the S&P Biotechnology Select Industry Index.

The Global X S&P Biotech ETF (CURE) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Biotechnology Select Industry Index.

• The US biotechnology industry is valued at US$193.1bn¹. This is approximately 28.4x the size of the Australian biotechnology industry².
• It takes on average 10.5 years to bring a new drug to market³

¹ (IBISWorld, 2024) https://www.ibisworld.com/united-states/market-research-reports/biotechnology-industry/#:~:text=Industry%20revenue%20

has%20declined%20at,estimated%20%24193.1bn%20in%202023

² (IBISWorld, 2024) https://www.ibisworld.com/au/market-size/biotechnology/

³ (N-Side, 2022) https://lifesciences.n-side.com/blog/what-is-the-average-time-to-bring-a-drug-to-market-in-2022

Biotechnology refers to technologies that use biological processes and is a sub-industry of the healthcare sector, capturing companies that focus on research, development, manufacturing of products based on biological and genetic information. This includes companies specialising in protein-based therapeutics to treat human diseases. It excludes companies manufacturing products using biotechnology but without a health care application.

• Immunotherapy treatments.
• Vaccines to treat human diseases.

Innovations from the companies in the index range from treatments for diseases such as sickle cell disease, diabetes or HIV/AIDS, detection and treatment for types of cancer or research and development into vaccines for illnesses like Zika Virus or COVID-19.

The US Food & Drug Administration (FDA) approval process is world-renowned and any companies seeking access to distribute their products in the US market need to submit to FDA evaluation.

It has set a global standard and many international companies have sought to base themselves in the US to more easily take part in the FDA approval process as well as allow themselves better distribution access to US consumers.

• A minimum of 35 index constituents which are also members of the S&P Total Market Index and classified as Biotechnology sub-industry stocks.
• Companies must have a minimum market capitalisation of US$300m and float-adjusted liquidity ratio of 50% (for existing index constituent, new constituents have higher requirements).
• Companies are weighted equally rather than by market capitalisation and rebalanced quarterly.

• CURE can be used to express long-term strategic views or short term tactical views on the biotechnology sub-industry.
• It can assist in diversifying Australian portfolios across biotechnology, given the highly concentrated exposure domestically.
• As a thematic tilt towards megatrends.

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The issuer of units in Global X S&P Biotech ETF (CURE) ARSN: 628 037 105 is the responsible entity of the Fund, being Global X Management (AUS) Limited (AFSL 466778) ("Global X"). The product disclosure statement (PDS) for the Fund contains all of the details of the offer of units in the Fund. Copies of the PDS are available from Global X Management (AUS) Limited or at www.globalxetfs.com.au. In respect of each retail product, Global X has prepared a target market determination (TMD) which describes the type of customers who the relevant retail product is likely to be appropriate for. The TMD also specifies distribution conditions and restrictions that will help ensure the relevant product is likely to reach customers in the target market. Each TMD is available at www.globalxetfs.com.au. The information provided in this document is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information in this document, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of Global X, the group of companies which Mirae Asset Global Investments Co., Ltd is the parent, or their respective directors, employees or agents guarantees the performance of any products issued by Global X or the repayment of capital or any particular rate of return therefrom. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance. Standard & Poor's S&P Indices are trademarks of Standard & Poor's Financial Services LLC. “S&P”, as used in the term S&P 500, is a trademark of Standard & Poor's Financial Services LLC ("S&P") respectively and has been licensed for use by Global X. Global X products are not sponsored, endorsed, sold or promoted by S&P, and S&P does not make any representation regarding the advisability of investing in ETFS products.