Think back to the “space race” in the latter half of the 20th century. A plethora of new technologies were necessary in order to achieve the ultimate goal of putting a man in space. In the end, the world achieved this historic milestone, but the byproducts yielded from this monumental objective would have a lasting impact on the world. Wireless headsets, LED lighting, memory foam, and scratch resistant lenses were just a few of the offshoots in reaching outer space. These new technologies would go on to disrupt their respective industries in major ways.1 Fast forward 50 or so years and the world is facing another mammoth challenge: Tackling the COVID-19 pandemic.
Now, over a year into the global pandemic, the innovation generated in the vaccine space over the past 12 months is evident. mRNA technology, a microcosm of pandemic onset innovation, created safe and effective vaccines deployed to the world in a record-breaking time frame.2 Previously only theorized, COVID-19 provided a successful proof-of-concept for this new technology which inherently holds the potential to disrupt a multitude of therapeutic areas including cancer and HIV amongst others.3
“Within 10 years’ time, we’ll see probably dozens of mRNA therapeutics. In maybe 15 years’ time, we’ll see maybe 50 or 60 mRNA therapeutics,” says Co-Founder of Moderna Derrick Rossi.3
Taking a step back to examine the vaccine market outside of COVID-19, there are over 20 combined pandemics and epidemics affecting the world today.4 Factors such as:
– Deforestation and urbanization diminishing natural habitats thus decreasing the proximity between humans and wildlife.5&6
– Population growth, increased consumption, and climate change creating supply-demand imbalance of food supplies pushing populations to alternative food sources.7&8
– Increased global mobility of humans, animals, plants, and products driving the introduction of infectious diseases to new locations.9
Unfortunately, each contribute to the daunting expert consensus of COVID-19 being the latest in a string of potential future global pandemics.10 Prior to the current pandemic, the human vaccines market was expected to grow at an 11.2% CAGR and reach $72.5 billion from 2016-2024.11 The three facets of combatting infectious diseases (Testing, Treatments, and Vaccines) will be vital components going forward in detecting, remedying, and eradicating both current and future viral contagions.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting www.etfmg.com/GERM. Read the prospectus carefully before investing.
Investing involves risk, including loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility. Treatment Companies and Testing Companies are involved in discovering, developing and commercializing novel drugs or tests with significant market potential. These companies face challenges including pre-clinical testing and clinical trial stages of development. Clinical trials may be delayed and certain programs may never advance in the clinic or may be more costly to conduct than anticipated. Such companies may be dependent on their ability to secure significant funding for research, development, and commercialization of therapeutics, vaccines, tests, and other health
care products or services. If there are delays in obtaining required regulatory and marketing approvals for products, the ability of such companies to generate revenue may be materially impaired. If regulatory approval is obtained, products will still remain subject to regulatory scrutiny with regulatory authorities having the ability to impose significant restrictions on the indicated uses or marketing. Lastly, even if a licensed product is achieved, such companies may encounter difficulties in manufacturing, product release, shelf life, testing, storage, supply chain management, or shipping.
The Fund is a recently organized, non-diversified management investment company with limited operating history.
ETF Managers Group LLC is the investment adviser to the Fund.
The Fund is distributed by ETFMG Financial LLC. ETF Managers Group LLC and ETFMG Financial LLC are wholly owned subsidiaries of Exchange Traded Managers Group LLC (collectively, “ETFMG”). ETFMG is not affiliated with Prime Indexes.
The Fund is intended to be made available only to U.S. residents. Under no circumstances is any information provided on this website intended for distribution to or use by, or to be an offer to sell to or solicitation of an offer to buy the Fund or any investment product or service of, any person or entity in any jurisdiction or country, other than the United States, where such distribution, use, offer or solicitation would subject the Fund or its affiliates to any registration requirement or be unlawful under the securities laws of that jurisdiction or country. Noah Hutkin is a registered representative of ETFMG Financial LLC.