The ERShares International Equity ETF (NYSEARCA: ERSX) is rapidly becoming a standout among small-cap exchange traded funds and it’s getting an assist from genomics stocks, many of which don’t dwell in traditional small-cap ETFs.
ERSX selects the most entrepreneurial, primarily Non-US Small Cap companies, that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF). ERShares’ ETF delivers strong performance across a variety of investment strategies without disrupting investors’ underlying risk profile metrics. Their geographic diversity enables them to harness global advantages through additional returns associated with currency fluctuations, strategic geographic allocations, comparative trade imbalances, and relative supply/demand strengths.
Biotech companies and genomics such as Crispr, Intellia, Twist Biosciences, Veracyte, and Editas have more than quadrupled year-to-date, providing a significant tailwind to ERSX.
ERShares Chief Investment Officer Eva Ados cites “favorable macroeconomic conditions as well as a strong Merger and Acquisition environment that uses high stock prices as currency to buy other companies,” according to the issuer.
Genomics and More
Genomics companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision; restructuring health care, agriculture, pharmaceuticals, and enhancing our quality of life. Data confirm that genomics is a booming market with epic potential for investors.
Rising government funds for research on genomics drives the growth of the single-cell genomics market. The government funding focuses on efforts to resolve the complexity of the human genome, the genomic basis of human health and disease, and ensure that genomics is used safely to enhance patient care and benefit society through government, public and private institutions.
Looking ahead, CRISPR-based innovations are expected to accelerate, given the technology’s ease of use, cost-efficacy, a growing body of research surrounding its safety, and AI-powered CRISPR nuclease selection tools. CRISPR could also be utilized to address some of the most prominent healthcare problems, which opens up a significant investment opportunity in monogenic diseases.
ERSX has the added benefit of international exposure, a trait that could serve investors well in 2021.
Ados “notes the sliding dollar, as well as rising long-term interest rates, provide impetus to move funds from fixed income (bonds) into Small Caps and International. She notes that as money rotates from a few mega-caps into smaller cap companies it can have a disproportionate effect on the movement of prices as we witnessed today with some healthcare stocks,” according to ERShares.
For more on entrepreneurial strategies, visit our Entrepreneur ETF Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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