S&P Biotech ETF (CURE) — Review & Analysis

CURE is the ASX's only pure-play biotech ETF, tracking the S&P Biotechnology Select Industry Index — an equal-weighted basket of US-listed biotech companies. AUM is $39.83 million as at May 2026, with a 0.45% p.a. management fee. The fund holds roughly 130 biotech names, deliberately balanced rather than dominated by the few mega-cap pharma giants. Compare CURE alongside the broader healthcare cohort on our healthcare and biotech ETF page.

Biotech is a fundamentally different investment from broad healthcare. Where IXJ and DRUG are dominated by cash-flow-generating pharma giants (Eli Lilly, Johnson & Johnson) and managed care insurers (UnitedHealth), CURE holds clinical-stage and earlier-stage biotech — companies whose value is driven by drug pipeline catalysts, FDA approvals and merger activity rather than current earnings. The equal-weighting amplifies the impact of mid-cap and smaller biotech names rather than just the established players.

The volatility profile reflects that. CURE has historically swung 2-3x as much as IXJ, with multi-hundred-percent rallies during biotech bull phases (2013-2015, 2020) and sharp drawdowns when capital tightens — the Russell 2000 Biotech index lost over 60% from its 2021 peak before stabilising. The equal-weighting reduces single-stock risk relative to picking individual biotechs, but the sector beta is still significantly higher than diversified healthcare.

CURE is best understood as a thematic satellite to broader healthcare exposure rather than a substitute for it. Investors typically hold CURE alongside IXJ or HLTH rather than instead of them — the pharma and biotech sub-sectors have meaningfully different return drivers, valuations and risk profiles. Our hold vs trade ETFs guide covers how high-volatility thematic funds like CURE are best deployed inside a portfolio.