nasdaq biotechnology index®
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Nasdaq Biotechnology Index®Investing in the Next Generation of Healthcare Innovators
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Biotech in the Age of Covid
Source: Nasdaq Global Indexes, New York Times, McKinsey Global Institute1. https://www.nytimes.com/interactive/2020/science/coronavirus-vaccine-tracker.html
• 5 Key Areas of Impact – Vaccines, Vaccines, Vaccines! But also: significant advancements in Identification, Diagnosis, Treatment, and Epidemiology
• Harbinger of the Future of Tech-Driven R&D – Biomolecules, Biosystems, Biomachine Interfaces, and Biocomputing
48.4
51.6
Top 10 vs. Rest of Index
Top 10 Rest of Index
3
NBITM Index Composition
Source: Nasdaq Global Indexes as of May 14, 2021
9.7
7.5
5.2
4.9
4.7
4.7
3.7
3.3
2.3 2.2
Top 10 Index % Weights as of May 14, 2021
AMGEN
GILEAD SCIENCES
MODERNA
VERTEX PHARMACEUTICAL
ILLUMINA
REGENERON PHARMACEUTICAL
BIOGEN
ALEXION PHARMACEUTICAL
SEAGEN
ASTRAZENECA
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Market Cap/Subsector/Globality Profile
Source: Nasdaq Global Indexes, FactSet, Bloomberg as of April 30, 2021
87%
13%
Index % Weights by Domicile Country
US International
12.8
23.5
27.1
15.5
21.1
Index % Weight by Market Cap
$100B+ $10-50B $50-100B
$5-10B <$5B
65.2
34.8
Index % Weight by ICB Subsector
Biotechnology Pharmaceuticals
# of Biotechnology: 230# of Pharmaceuticals: 44
# of US-Domiciled: 231# of International: 43
# of >$5Bn Companies: 54# of <$5Bn Companies: 220
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Biotechnology vs. Pharmaceuticals
Source: Nasdaq Global Indexes, FactSet, Bloomberg
1) Biotechnology is a complex, hybrid industry comprised mainly of 2 types of companies:• R&D-intensive, often clinical trial-stage companies focused on intellectual property/patents • More mature companies with approved products already on the market, participating in all phases of
Discovery / Development / Manufacture of treatments
2) Companies exist which blur the line between “pure-play Pharma” and “pure-play Biotech”• Amgen – largest NBI Index constituent – was reclassified by ICB in 2021 from Biotechnology to
Pharmaceuticals• 41 companies representing 13% of NBI weight are classified as Biotechnology by ICB Subsector, but
contain the word “Pharma” or “Pharmaceutical” in their Company Name• 140 companies classified as Biotechnology by ICB (38.5% of index weight) contain “Pharma” or
“Pharmaceutical” in their Company Description, per Factset
3) Nasdaq-listed Pharmaceutical companies tend to be much younger than NYSE-listed (average time of 15 years since IPO vs. 37 years, respectively) based on Dow Jones US Select Pharmaceuticals Index To construct the perfect benchmark for Biotechnology, ideally the index will capture all pure-play
Biotechnology firms (most of which are Nasdaq-listed) + certain Pharmaceuticals that are “biotech-adjacent” or were originally founded as pure-play biotech (most of which are also Nasdaq-listed)
6
NBI vs. Competitor Benchmarks: Highlights
Source: Nasdaq Global Indexes, S&P Dow Jones Indices, ICE Data Indices as of May 14, 2021.
Index Name Index Ticker
WeightingDescription
Weighting Constraints
Industry Classification
Launch Year
Count Listing Venue
Nasdaq BiotechnologyIndex
NBI Modified Market Cap-Weighted
8% cap for Top 5; 4% cap for rest
ICB:Biotechnology or Pharmaceuticals Subsectors
1993 274 Nasdaq-Only
S&PBiotechnology Select Industry Index
SPSIBI Modified Equal-Weighted
Each constituent has liquidity to allow 100% daily turnover of a $2Bn tracking portfolio
GICS: Biotechnology Sub-Industry
2006 190 Nasdaq/NYSE/ CBOE
ICE Biotechnology Index
ICEBIO Modified FloatMarket Cap-Weighted
8% cap for Top 5; 4% cap for rest
ICE: Biotechnology Sub-Industry*
2021 273 Nasdaq/NYSE/ CBOE
* Per ICEBIO index methodology: “This includes companies that are engaged in the research and development of therapeutic treatments but are not focused on the commercialization and mass production of pharmaceutical drugs.”
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NBI vs. Competitors: Methodology DetailsIndex Name Index
TickerReconstitution Schedule
Rebalance Schedule
Minimum Market Cap Constraints
Minimum Liquidity Constraints
Minimum Float Constraints
Geography
Nasdaq BiotechnologyIndex
NBI December MarchJuneSeptember
$200MM (non-floatadjusted)
100,000 Shares (10-month ADTV)
None Global
S&PBiotechnology Select Industry Index
SPSIBI MarchJuneSeptemberDecember
MarchJuneSeptemberDecember
$300MM (float-adjusted); $400MM/ $500MM for new additions
12-monthfloat-adjusted liquidity ratio (FALR) of 50%
None, but minimum FALR for new additions is 150%/90%
US
ICE Biotechnology Index
ICEBIO December MarchJuneSeptember
$200MM (non-floatadjusted)
100,000 Shares (10-month ADTV)
5% Unknown
Source: Nasdaq Global Indexes, S&P Dow Jones Indices, ICE Data Indices as of May 14, 2021.
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SPSIBI: Overlap by Subsector/Exchange
Source: Nasdaq Global Indexes, FactSet, Bloomberg as of 5/14/2021.
ICB Subsector: Biotechnology Medical Services
Medical Supplies
Pharmaceuticals Grand Total
Count of Constituents
NYSE-listedNasdaq-listedTotal
5165170
033
011
11516
6184190
Sum of Index Weight
NYSE-listedNasdaq-listedTotal
2.89%84.98%87.88%
0.00%1.83%1.83%
0.00%0.27%0.27%
0.79%9.11%9.90%
3.68%96.19%99.87%*
Count of Constituents
SPSIBI-OnlyNBI OverlapTotal
35135170
303
101
11516
40150190
Sum of Index Weight
SPSIBI-OnlyNBI OverlapTotal
16.76%71.12%87.88%
1.83%0.00%1.83%
0.27%0.00%0.27%
0.79%9.11%9.90%
19.65%80.23%99.87%
*SPSIBI constituent-level data based on XBI ETF holdings, which includes 0.13% allocated to Cash.
293.2%
361.3%
262.7%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
Total Returns vs. Competitor Benchmarks as of June 9, 2021
ICEBIOT SPSIBITR XNBI
9
Performance Since Inception of ICE Biotech Backtest
Source: Nasdaq Global Indexes, FactSet, Bloomberg
10
YTD 2021 Performance
Source: Nasdaq Global Indexes, FactSet, Bloomberg
7.2%
12.3%
5.1%
6.0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
12/31/2020 1/31/2021 2/28/2021 3/31/2021 4/30/2021 5/31/2021
Price Performance vs. Market Benchmarks as of June 9
NDX SPX IHC NBI
10.1%
-4.4%
6.0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
12/31/2020 1/31/2021 2/28/2021 3/31/2021 4/30/2021 5/31/2021
Price Performance vs. Competitor Indexes as of June 9
ICEBIO SPSIBI NBI
11
Full-Year 2020 Performance
Source: Nasdaq Global Indexes, FactSet, Bloomberg
26.6%
47.9%
25.7%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Price Performance vs. Competitor Indexes
ICEBIO SPSIBI NBI
47.6%
16.3%
30.0%
25.7%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Price Performance vs. Market Benchmarks
NDX SPX IHC NBI
12
Performance Throughout the 2010s
Source: Nasdaq Global Indexes, FactSet, Bloomberg
369.4%
189.7%
284.4%
348.9%
-25%
25%
75%
125%
175%
225%
275%
325%
375%
425%
12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019
2010-2019 Performance vs. Market Benchmarks
NDX SPX IHC NBI
13
NBI ETF AUM: 3-Year Trend
ETFs currently tracking NBI in the US include the iShares Nasdaq Biotechnology ETF (Nasdaq: IBB), ProShares Ultra Nasdaq Biotechnology ETF (Nasdaq: BIB), and ProShares UltraShort Nasdaq Biotechnology ETF (Nasdaq: BIS). In Europe and Israel, products include Invesco Nasdaq Biotech UCITS ETF (London: SBIO), iShares Nasdaq US Biotechnology UCITS ETF (London: BTEC), and Tachlit Nasdaq Biotechnology ILS (Tel Aviv: TCBI105).In Asia, products include Capital Nasdaq Biotechnology Index ETF (Taiwan: 00678), and Mirae Asset TIGER Nasdaq BIO ETF (Korea: 203780).
Source: Nasdaq Global Indexes, FactSet, Bloomberg
6
7
8
9
10
11
12
13
14
4/30/2018 7/31/2018 10/31/2018 1/31/2019 4/30/2019 7/31/2019 10/31/2019 1/31/2020 4/30/2020 7/31/2020 10/31/2020 1/31/2021 4/30/2021
3-Year Global ETF AUM thru April 30, 2021 ($Bn)
+ 86% since March 2020 low
14
R&D Intensity Across Key Areas of Innovation
Source: Nasdaq Global Indexes, Yewno data as of May 31, 2020
12.4%
21.4%
31.6%
38.9%
50.0%
19.0%
78.2%
BioInformatics & BioChips
Geriatrics
Human Augmentation & Gene Therapy
Next Generation Sequencing
Precision Medicine
Regenerative Medicine
Orphan Diseases
3-Year Patent Contribution by NBI Companies
7
24
22
2
1
38
5
BioInformatics & BioChips
Geriatrics
Human Augmentation & Gene Therapy
Next Generation Sequencing
Precision Medicine
Regenerative Medicine
Orphan Diseases
# of NBI Companies with Patent Activity
* Clinical Trials Data
15
Biotechnology & Pharmaceutical Diversity
Source: Nasdaq Global Indexes as of May 14, 2021
Disclaimer
Nasdaq®, Nasdaq Biotechnology Index® are registered trademarks of Nasdaq, Inc. NBITM is a trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
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