What is the investment strategy of the IBRN ETF?

The IBRN ETF's investment strategy involves investing in large- and mid-capitalization companies with market capitalizations generally above $1 billion. The fund seeks to identify dividend-paying companies with the potential for increasing dividend payments in the future.

How does the Sub-Adviser select investments for the IBRN ETF?

The Sub-Adviser uses both fundamental analysis and quantitative methods to select investments. They analyze securities based on price multiples, earnings ratios, and other measures of value, and then use quantitative metrics to assess dividend payment history, free cash flow, dividend growth rate, and other technical factors to identify companies with the potential for multiple dividend increases over time.

How many companies does the IBRN ETF typically hold in its portfolio?

The IBRN ETF generally holds securities of approximately 30 to 50 companies at any given time, which are ranked highest based on the Sub-Adviser's assessment of their potential to generate increased levels of dividend payments over time.

What are the major sector exposures of the IBRN ETF as of September 2022?

As of September 2022, the IBRN ETF had significant exposures to the following sectors: Health Care (20.8%), Consumer Discretionary (15.2%), Energy (14.1%), Financials (12.8%), and Information Technology (11.3%).

5 min read

By Beqa Bumbeishvili, ETF Insider

What is the IBRN ETF ?

In the fast-paced world of finance, exchange-traded funds (ETFs) have gained immense popularity as a versatile investment option. In this article, we will take a closer look at the IBRN ETF (NYSE® FactSet® Global Neuro Biopharma and MedTech Index), its underlying index, the benefits it offers to investors, and essential considerations before investing.

IBRN ETF: Overview

The IBRN ETF, also known as the NYSE® FactSet® Global Neuro Biopharma and MedTech Index Fund, is a specialized ETF that aims to track the investment results of the NYSE® FactSet® Global Neuro Biopharma and MedTech Index (the "Underlying Index"). The ETF's primary focus lies in investing in equity securities of companies involved in the research, development, or manufacturing of neurology biopharmaceuticals or neurological devices.

IBRN ETF Underlying and Exposure: What does it track and how?

The Underlying Index is meticulously designed to measure the performance of companies operating within the neurology biopharmaceuticals and neurology devices industries. For a company to be included in the Underlying Index, it must satisfy specific criteria, such as being listed in developed and emerging market countries or regions, having a minimum market capitalization of $100 million, and a three-month average daily trading value (ADTV) of at least $1 million.
The Index Provider, ICE Data Indices, LLC, or its affiliates, determines the composition and relative weightings of securities in the Underlying Index. The index classification relies on the FactSet Revere Business Industry Classification System (RBICS) and includes companies that derive at least 50% of their annual revenues from neurology biopharmaceuticals or neurological devices. Companies with connections to psychedelics or cannabis are excluded from the index.
The Underlying Index is reviewed and reconstituted semi-annually in March and September and is rebalanced quarterly. This allows the index to adapt to changing market dynamics, ensuring that it remains representative of the industry.

IBRN overlap What is the IBRN ETF ?

IBRN ETF: Benefits to Invest

As a passive ETF, the IBRN Fund employs an indexing approach, which seeks to mirror the performance of the Underlying Index. The key advantage of this strategy is that it eliminates the risk of substantial underperformance compared to active management, although it might not outperform the index significantly either.
By investing in the IBRN ETF, investors gain exposure to a diversified portfolio of companies involved in the promising neurology biopharmaceuticals and neurological devices industries. This diversification spreads risk across various companies, potentially reducing volatility compared to investing in individual stocks.
Furthermore, ETFs generally offer lower expense ratios compared to actively managed funds, contributing to better after-tax performance. This cost-effectiveness can be an appealing factor for investors seeking long-term growth with minimal expenses.

IBRN ETF: Considerations Before Investing

While the IBRN ETF offers exposure to a specialized sector with growth potential, it is essential to consider certain factors before investing:
Industry Risks: Investing in a specific sector like neurology biopharmaceuticals and neurological devices carries inherent risks related to regulatory changes, technological advancements, and competitive pressures. Downturns in the healthcare industry could also impact the ETF's performance.
Performance Volatility: As with any investment, the IBRN ETF's performance can be subject to market volatility. Investors should evaluate their risk tolerance and investment horizon before considering this ETF.

Currency Risk: If the ETF includes international companies, fluctuations in currency exchange rates could affect the fund's returns.
Diversification: While the ETF provides diversification within the neurology biopharmaceuticals and MedTech industries, investors should ensure their overall portfolio is well-diversified across various asset classes.

Conclusion:
In conclusion, the IBRN ETF presents an opportunity for investors to gain exposure to the promising neurology biopharmaceuticals and MedTech industries. It tracks the performance of a specialized index, providing diversification and potentially reducing risk. However, like all investments, it is crucial for investors to thoroughly analyze their financial goals, risk appetite, and investment strategy before making a decision.

Disclaimer: This article is for informational purposes only and does not provide investment advisory services. Investors should conduct thorough research and consider consulting with a qualified financial advisor before making any investment decisions.

IBRN ETF issuer
IBRN ETF official page

IBRN quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the IBRN iShares Neuroscience and Healthcare ETF, access our dedicated page now.

Get started

FAQ

What is the IBRN ETF?
The IBRN ETF, also known as the Income Builder ETF, is an actively managed exchange-traded fund that aims to provide rising dividend income streams over time by investing in equity securities.
What is the investment strategy of the IBRN ETF?
The IBRN ETF's investment strategy involves investing in large- and mid-capitalization companies with market capitalizations generally above $1 billion. The fund seeks to identify dividend-paying companies with the potential for increasing dividend payments in the future.
How does the Sub-Adviser select investments for the IBRN ETF?
The Sub-Adviser uses both fundamental analysis and quantitative methods to select investments. They analyze securities based on price multiples, earnings ratios, and other measures of value, and then use quantitative metrics to assess dividend payment history, free cash flow, dividend growth rate, and other technical factors to identify companies with the potential for multiple dividend increases over time.
How many companies does the IBRN ETF typically hold in its portfolio?
The IBRN ETF generally holds securities of approximately 30 to 50 companies at any given time, which are ranked highest based on the Sub-Adviser's assessment of their potential to generate increased levels of dividend payments over time.
What are the major sector exposures of the IBRN ETF as of September 2022?
As of September 2022, the IBRN ETF had significant exposures to the following sectors: Health Care (20.8%), Consumer Discretionary (15.2%), Energy (14.1%), Financials (12.8%), and Information Technology (11.3%).

Try ETF Insider