Advances in Ocular DNA Synthesis in Active Biotechnology ETF ARKG
It’s hard to imagine now, but at the turn of the millennium, the great technological advancement wasn’t the last phone app, it was the human genome project. Since then, advances in genetics are now fueling the healthcare and biotechnology industries, with the latest updates in DNA synthesis. A recent paper highlights the possibility of creating custom-designed DNA sequences, strengthening the case for an active biotech ETF like the ETF ARK Genome Revolution (ARKG).
Developed in the 1970s, so-called de novo DNA synthesis creates new strands of DNA without using a template, enabling new drugs to be created and basic research to be performed, according to ARK Invest. As such, de novo DNA synthesis is an essential part of genetics research and its uses.
This is why a new article published in Nature Reviews Chemistry deserves attention. The article and its research highlight how the current use of DNA-based capabilities has resulted in a “virtuous circle” that has driven demand for DNA sequencing and, in turn, lower costs for the synthesis of DNA which should enable even more powerful synthesis in the future.
The biotechnology-enabled ETF ARKG and its focus on disruptive innovation in space presents it as a major option to consider for those convinced by the potential of advances in DNA synthesis . ARKG is looking for companies that can benefit from such advances in areas such as gene editing, gene therapy, molecular diagnostics, etc.
Charging 75 basis points, ARKG has outperformed its ETF Database category average and its FactSet segment average over the past month, with its returns of 19.4% significantly outperforming the respective average returns of 4.8% and 9% over the past month. ARKG holds Cologuard makers Exact Sciences Corporation (EXAS) as its most weighted stock at 11.7%, double the second-highest weight, Pacific Biosciences of California (PACB), at 5.7%.
Biotechnology and genetics offer investors a technological space with the advantage of links to a defensive area of health care. Add that to the fundamental promise of advances in genetics, and an active biotech ETF like ARKG may be a strategy worth considering this year.
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