The ETFs, which are linked to the Solactive Global Genomics Immunology and Medical Revolution CAD Hedged Index NTR and the Solactive Digital Security CAD Hedged Index NTR, allow investors to have access to high-demand industries especially as the COVID-19 pandemic struck in 2019.
Biotechnology and Genomics Immunology: CI Bio-Revolution ETF
The Coronavirus has catalyzed the development of new drugs and vaccines.[1] Research predicts the global mRNA vaccines and therapeutics market to grow at a compound annual growth rate (CAGR) of around 13% during 2021-2026.[2] Designed for investors who pursue to gain exposure to this industry, CI Bio-Revolution ETF (CDNA) seeks to track the performance of the Solactive Global Genomics Immunology and Medical Revolution CAD Hedged Index NTR, which serves as a representation of companies that have business operations in the global biotechnology and genomics industry.
Digital Security: CI Digital Security ETF
The same pandemic led most organizations to accelerate their adoption of digitalization and shift their workforce to work from home.[3] Digital security has gained prominence and grown in demand in the corporate environment. Aiming to capture the value of the growth of the digital security industry, CI Digital Security ETF (CBUG) seeks to replicate the Solactive Digital Security CAD Hedged Index NTR by providing targeted exposure to companies that have business operations in the global digital security industry, such as digital security technologies, digital security management, digital security software and digital security platforms.
ARTIS® Classification System
The selection of the companies that constitute both indices uses ARTIS®, Solactive’s proprietary natural language processing algorithm. The system screens publicly available information such as financial news, business profiles and company publication. Using keywords, it identifies companies that have or are expected to have significant exposure to the provision of products and/or services related to the theme of the index.
"The pandemic has put global medical sectors in the limelight, and many pharmaceutical evolutions originated in the last two years, with genomics technology and personalized medicine being part of a much broader and auspicious trend. At the same time, we have seen a major switch in the workspace, which have become in great part virtual, fostering digitalization with a need for digital security. With the launch of these two ETFs, CI Global Asset Management shows their foresight of the modern trends. We share this view and we are very glad to be chosen by them to provide investors with the opportunity of capturing value from innovation”, commented Timo Pfeiffer, Chief Markets Officer at Solactive.
“CI GAM is pleased to partner with Solactive to offer these ETFs, which allow investors to focus on the exceptional growth potential of two dynamic, innovative sectors of the global economy”, said Roy Ratnavel, Executive Vice-President and Head of Distribution. “With CI Bio-Revolution ETF and CI Digital Security ETF, CI GAM continues to build on our extensive lineup of thematic ETFs and expand the investment choices available to Canadian investors.”