Biotech and drug-innovation themes continue to dominate markets—from AI-driven drug discovery to blockbuster obesity treatments—and a new ETF filing suggests asset managers want a piece of that momentum.

According to a recent filing with the Securities and Exchange Commission, asset manager Defiance ETFs is preparing to launch a new biopharma-focused ETF.

The filing outlines an ETF designed to track an index concentrated in companies within the biopharma and health-care equipment and services industry groups—two segments that have drawn renewed investor attention as drug innovation accelerates and health-care spending climbs globally.

Targeting The Biopharma Innovation Wave

While the filing does not highlight specific holdings yet, the strategy indicates the fund will invest primarily in companies involved in biotechnology, pharmaceutical development and health-care technology.

Those industries have been in focus recently due to rapid advances in AI-assisted drug discovery, the commercialization of GLP-1 obesity drugs, and a rebound in biotech valuations after a prolonged downturn.

The proposed fund will also be non-diversified, allowing it to allocate larger portions of assets to fewer issuers. That structure can amplify exposure to dominant players in the biotech ecosystem but may also increase volatility.

A Rare Philanthropic ETF Model

Beyond the sector bet, the filing reveals an unusual philanthropic element.

Defiance said it intends to donate 100% of its net advisory profits from the ETF during its first two years, and at least 50% thereafter, to organizations supporting autism services, research and access to care.

The donations will be made at the adviser level and will not affect the ETF's expense ratio or investor returns.

The fund is newly proposed and has not yet launched or begun trading. If approved, it would add to the growing pipeline of thematic health-care ETFs, as issuers increasingly target specialized areas of medical innovation and biotechnology.

Broad funds like the Health Care Select Sector SPDR Fund (NYSE:XLV) and the Vanguard Health Care ETF (NYSE:VHT) offer diversified exposure to major drugmakers, such as Novo Nordisk (NYSE:NVO) and Eli Lilly And Co (NYSE:LLY).

Pharmaceutical-focused ETFs such as the VanEck Pharmaceuticals ETF (NASDAQ:PPH) and biotech-heavy funds like the iShares Biotechnology ETF (NASDAQ:IBB) and the State Street SPDR S&P Biotech ETF (NYSE:XBI) provide different levels of sensitivity to drug development milestones.

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