The new ETF will track the Nasdaq Biotechnology Index®, which includes companies that are primarily engaged in biomedical research to develop new treatments and cures for human disease. The iShares Nasdaq Biotech index stock will be managed by Barclays Global Fund Advisors, a subsidiary of Barclays Global Investors, N.A. (BGI), and manager of the largest selection of ETFs. Hull Trading will be the specialist firm in this product.
"An exchange traded fund that tracks the biotech sector was one of the most requested from our customers," said Lee Kranefuss, CEO of BGI’s Individual Investor Group. "The iShares Nasdaq Biotech index stock provides investors with cost-effective exposure to a diverse pool of securities in the biotech sector, plus the liquidity, ease of use, and ‘tradability’ of stocks."
"By bringing iShares Nasdaq Biotech index stock to market, investors now have the ability to hold a wide array of the largest and most actively traded biotechnology companies listed on Nasdaq. These Nasdaq biotech stocks represent some of the leading companies working hard to make significant strides in the area of biomedical research. In the year 2000, the Nasdaq Biotech Index increased 23 percent over the year. We are very excited about this new product and anticipate that it will be as well received in the marketplace as was the first Nasdaq-index based exchange traded fund, the Nasdaq-100 Index Tracking Stock (Amex: QQQ)," said John Jacobs, President and CEO, Nasdaq Investment Product Services, Inc.
Exchange traded funds such as iShares are index funds that are bought and sold like common stocks on a national securities exchange. This flexibility enables investors to purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. Similar to many index funds, iShares are designed to have relatively low portfolio turnover, which reduces transaction costs incurred by the fund and minimizes capital gains distributions to investors. Similar to common stocks, iShares can be traded during normal market hours and are priced intra-day. For a full list of currently available iShares, visit www.ishares.com.
