Solactive releases Genomics Index based on its NLP engine ARTIS® – underlying the Global X Genomics & Biotechnology ETF
Solactive is pleased to announce the release of the Solactive Genomics Index, which serves as the underlying for the Global X Genomics & Biotechnology ETF [Ticker: GNOM]. The ETF enables investors to specifically invest in companies that are pioneers in Genomics. The underlying index tracks the price movements in shares of companies that are active in the fields such as gene editing, genomic sequencing, development and testing of genetic medicine or therapies, and genetic diagnostics or biotechnology. To develop this index, Solactive utilized its proprietary Natural Language Processing algorithm ARTIS®.
According to a study published by the market intelligence provider BIS research center, genomics technology holds the potential to generate a revenue of USD 140 bn by 2026. This immense revenue forecast implies the tremendous potential that this cutting-edge technology cocoons, and as a sideline, implies the capability it holds to revolutionize not only the entire biotechnology sector but the way humanity treats illnesses.
Companies that are eligible for the index must generate at least 50% of their revenues from genomics-related businesses and/or are classified as “Biotechnology” according to conventional Industries and Economic Sectors classification systems. If a company qualifies for “Biotechnology” classification, Solactive executes a greater in-depth analysis to reveal the candidate’s activity in genomics technology. In the next step, Solactive’s proprietary ARTIS® engine, which screens publicly available information such as financial websites, search engines or company publications using its proprietary a natural language processing algorithm, further refines the prefiltered universe.
ARTIS® utilizes advanced algorithms to parse large volumes of public documents evaluating companies’ relevancy to various themes or topics. Going beyond a solely qualitative approach, the sophisticated procedure ranks potential index constituents according to proprietary criteria, not only considering a company’s exposure to a theme but also the company’s importance to the theme.
Timo Pfeiffer, Head of Research of Solactive, comments: “This index combines two very cutting-edge subjects: one is the topic itself, genomics, which is a megatrend bearing incredible potential. Its innovations will contribute to medical and therefore societal paradigm shifts, paving the way for discoveries in smart technology and personalized medicine. We are very proud to have found a kindred spirit in Global X, which is also a player that dares to disrupt the industry in the space of thematic ETFs.”
The Global X Genomics & Biotechnology ETF will be listed on NASDAQ on April 9th, 2019.