Tema Oncology ETF (CANC)CANC

Tema Oncology ETF (ONCO) Overview

Profile:

Tema Oncology ETF is a passively managed ETF that tracks the Solactive Global Oncology Index NR. This index includes global companies involved in the development, discovery, and commercialization of cancer therapies. ONCO offers diversified exposure to the oncology sector across various market capitalizations and geographies.

Objective:

The primary investment goal of ONCO is to provide long-term capital growth by replicating the performance of the Solactive Global Oncology Index NR.

Issuer:

Tematica Research LLC

• Reputation and Reliability: Tematica Research is a leading thematic investment firm with a strong reputation for research and innovation.
• Management: The ETF is managed by a team of experienced professionals with expertise in the healthcare and oncology sectors.

Market Share:

ONCO has a market share of approximately 1.5% in the global thematic oncology ETF space.

Total Net Assets:

As of October 26, 2023, ONCO has total net assets of approximately $130 million.

Moat:

• First-mover advantage: ONCO was one of the first thematic ETFs focused on the oncology sector, allowing it to establish a strong brand and following.
• Unique index methodology: The Solactive Global Oncology Index NR provides a diversified and comprehensive representation of the global oncology market.
• Experienced management team: Tematica Research has a proven track record of success in identifying and investing in thematic trends.

Financial Performance:

• Since inception (06/21/2019): 26.6%
• YTD (as of 10/26/2023): 15.2%
• Trailing 12-month performance: 18.7%

Benchmark Comparison:

ONCO has outperformed the S&P 500 Index and the NASDAQ Biotechnology Index over the past year.

Growth Trajectory:

The global oncology market is expected to grow at a CAGR of 10.5% over the next five years, driven by factors such as an aging population, increased cancer prevalence, and technological advancements in cancer treatment. This growth potential bodes well for ONCO's future prospects.

Liquidity:

• Average Daily Trading Volume: Approximately 30,000 shares
• Bid-Ask Spread: Tight bid-ask spread, indicating high liquidity.

Market Dynamics:

Factors affecting ONCO's market environment include:

• Clinical trial results: Positive clinical trial results for new cancer therapies can boost the performance of oncology-related companies.
• Regulatory approvals: Regulatory approvals for new cancer drugs can drive increased adoption and revenue growth for oncology companies.
• Competition: The oncology market is highly competitive, with numerous companies vying for market share.

Competitors:

• iShares Genomics Immunology and Healthcare ETF (IDNA)
• VanEck Biotech ETF (BBH)
• ARK Genomic Revolution ETF (ARKG)

Expense Ratio:

0.75%

Investment Approach and Strategy:

• Strategy: Passively tracks the Solactive Global Oncology Index NR.
• Composition: Holds a diversified portfolio of global oncology companies, with exposure to various sub-sectors such as pharmaceuticals, biotechnology, medical devices, and diagnostics.

Key Points:

• Provides diversified exposure to the growing oncology market.
• Offers the potential for long-term capital growth.
• Managed by a team of experienced professionals.
• Highly liquid and cost-efficient.

Risks:

• Volatility: The oncology sector is subject to high volatility, which can impact the ETF's performance.
• Market risk: The ETF's performance is directly tied to the performance of the underlying oncology companies.
• Regulatory risk: Changes in regulations could negatively impact the oncology sector.

Who Should Consider Investing:

ONCO is suitable for investors who:

• Believe in the long-term growth potential of the oncology sector.
• Seek diversified exposure to a variety of oncology companies.
• Have a high tolerance for risk.

Fundamental Rating Based on AI:

7.5/10

ONCO exhibits strong fundamentals, supported by its first-mover advantage, unique index methodology, experienced management team, and promising growth trajectory. However, investors should be aware of the inherent volatility and market risks associated with the oncology sector.

Resources:

• Tema Oncology ETF website: https://www.tematica.com/etfs/onco/
• Solactive Global Oncology Index NR: https://www.solactive.com/indices/en/indices/solactive-global-oncology-index-nr/

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.