Nasdaq Biotechnology IndexInvesting in the Next Generation of Healthcare Innovators

Index Overview• The Nasdaq Biotechnology Index (NBI) tracks the performance of

Nasdaq-listed securities classified as Biotechnology or Pharmaceuticals by the Industry Classification Benchmark (ICB)

• Eligible companies must have a minimum market capitalization of $200MM

• Eligible companies must have a minimum average daily trading volume of 100,000 shares

• The index is modified market capitalization-weighted such that constituents are capped at 8% (for the top 5) and at 4% (for the remaining) at each quarterly index rebalance

• The index is reviewed and reconstituted annually in December

• The index currently contains 207 components

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3

YTD 2020 Performance

Source: Nasdaq Global Indexes, FactSet, Bloomberg

-0.4%

-6.2%

4.4%

9.6%

-40%

-30%

-20%

-10%

0%

10%

20%

YTD 2020 NBI Performance vs. Market Benchmarks thru May 29

IXV SPX COMP NBI

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2019 Performance

Source: Nasdaq Global Indexes, FactSet, Bloomberg

18.7%

28.9%

35.2%

24.4%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

12/31/2018 1/31/2019 2/28/2019 3/31/2019 4/30/2019 5/31/2019 6/30/2019 7/31/2019 8/31/2019 9/30/2019 10/31/2019 11/30/2019 12/31/2019

2019 NBI Performance vs. Market Benchmarks

IXV SPX COMP NBI

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3-Year Performance

Source: Nasdaq Global Indexes, FactSet, Bloomberg

34.6%

24.0%

51.1%

38.8%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

5/31/2017 8/31/2017 11/30/2017 2/28/2018 5/31/2018 8/31/2018 11/30/2018 2/28/2019 5/31/2019 8/31/2019 11/30/2019 2/29/2020

3-Year NBI Performance vs. Market Benchmarks thru May 29

IXV SPX COMP NBI

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Index Composition

7.99

7.77

7.58

7.09 5.72

4.61

2.94

2.89

2.46

2.40

2.08

1.66

1.29 1.25

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Top 15 Index Weights as of May 29, 2020

VERTEX PHARMACEUTICAL

AMGEN

GILEAD SCIENCES

REGENERON PHARMACEUTICALS

BIOGEN

ILLUMINA

SEATTLE GENETICS

ALEXION PHARMACEUTICALS

MODERNA

INCYTE

BIOMARIN PHARMACEUTICAL

ALNYLAM PHARMACEUTICALS

SAREPTA THERAPEUTICS

NEUROCRINE BIOSCIENCES

SANOFI ADR

Source: Nasdaq Global Indexes, FactSet, Bloomberg

59%41%

Top 15 vs. Rest of Index

Top 15 Names Rest of Index

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Individual Price Performance YoY – Top 15

Source: Nasdaq Global Indexes, FactSet, Bloomberg

32.1

23.8

3.9 0.5

(1.4)

10.6

101.7

11.1

28.1

37.3

(0.7)

58.0

18.2

50.5

31.5

(4.7)

19.8

63.2

3.5

9.4

37.6

10.9

16.7

26.0

17.5 18.0 16.1

-10

10

30

50

70

90

110

130

VRTX AMGN GILD REGN BIIB ILMN SGEN ALXN MRNA INCY BMRN ALNY SRPT NBIX

2019 vs. 2020 YTD Returns as of May 29, 2020 in %

2019 Returns YTD 2020 Returns

214.4

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R&D Intensity

15.0%

16.2%

4.3%

66.7%

50.0%

18.6%

79.2%

11.7%

21.2%

4.5%

26.9%

50.0%

18.5%

76.5%

BioInformatics & BioChips

Geriatrics

Human Augmentation & Gene Therapy

Next Generation Sequencing

Precision Medicine

Regenerative Medicine

Orphan Diseases

Patent Contribution by NBI companies according to Yewno data:Selected Healthcare Technologies

Last 3 Years Last 12 Months

Source: Nasdaq Global Indexes, FactSet, Bloomberg, Yewno

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Market Cap & Globality Profile

Source: Nasdaq Global Indexes, FactSet, Bloomberg

9%

33%

19%

13%

26%

Index Weight by Market Cap as of May 29, 2020

$100B+ $50-100B $10-50B $5-10B <$5B

90%

10%

Index Weights by Domicile Country

US International

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NBI ETF AUM

6.2

9.8

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

5/31/2017 8/31/2017 11/30/2017 2/28/2018 5/31/2018 8/31/2018 11/30/2018 2/28/2019 5/31/2019 8/31/2019 11/30/2019 2/29/2020

3-Year NBI ETF AUM thru May 29, 2020 ($B)

ETFs currently tracking NBI include the iShares Nasdaq Biotechnology ETF (Nasdaq: IBB), ProShares Ultra Nasdaq Biotechnology ETF (Nasdaq: BIB), ProShares UltraShort Nasdaq Biotechnology ETF (Nasdaq: BIS), Invesco Nasdaq Biotech UCITS ETF (London: SBIO), iShares Nasdaq US Biotechnology UCITS ETF (London: BTEC), Tachlit Nasdaq Biotechnology ILS (Tel Aviv: TCBI105), Capital Nasdaq Biotechnology Index ETF (Taiwan: 00678), and Mirae Asset TIGER Nasdaq BIO ETF (Korea: 203780).

Source: Nasdaq Global Indexes, FactSet, Bloomberg

Disclaimer

Nasdaq® is a registered 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. © 2020. Nasdaq, Inc. All Rights Reserved.

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