Inside ASD: The Story Behind the First Autism ETF

The Defiance Autism Impact ETF (ASD) launched June 1 as the first fund built entirely around companies tied to autism care. Behind it is a personal story from inside the firm itself.Key Takeaways: First ETF built entirely around autism-focused companies launched June 1. Defiance donates 100% of profits to autism charities for two years. Top holdings span drugmakers, biotech, education and home care firms. Speaking on a recent episode of the ETF Prime podcast, Defiance Chief Investment Officer Sylvia Jablonski said the fund grew out of the experience of the firm’s founder, Matthew Bielski, and general counsel Gabriela Zahn-Bielski. Their son has profound autism, and the couple has spent years navigating his care. See more: ETF Prime: Defiance Launches First-Ever Autism ETF “They have dedicated their entire lives to supporting their son,” Jablonski told host Nate Geraci. She said the goal was to build “an ETF that invests in these companies that are working on these groundbreaking types of advances or education or therapies or services that benefit the greater neurodivergent and autistic society.” The numbers behind the theme are large. Jablonski cited data showing roughly one in 31 children is now diagnosed with autism. She put the lifetime cost at about $3 million per individual, with projected nationwide costs of $461 billion. ASD tracks the VettaFi Autism Impact Index, built by index provider VettaFi, according to Jablonski. The index does not rely on a handful of “pure play” autism stocks, since few exist. Instead, it scours biotech, education and technology companies for ties to what Jablonski called “the autism ecosystem.” That ecosystem spans drug development, behavioral education and assistive technology, Jablonski said. The fund also carries a philanthropic structure. Defiance will donate 100% of ASD’s net profits to autism-focused nonprofits for its first two years, and at least 50% annually after that, she confirmed.Healthcare Names Lead Early PerformanceHealthcare makes up 85.9% of the index by weight, according to VettaFi data. Consumer discretionary names, including education and therapy-services companies, account for 10.9%. Media and communications make up the remaining 3.2%. By category, drugs and therapeutics represent 71.3% of the portfolio, the data shows. Specialized services and educational technology account for 22.7%, while diagnostics and assessment tools make up 6%. In the index’s first week and a half, large pharmaceutical names led gains. Johnson & Johnson (JNJ) rose 6.7%, Repligen Corp. (RGEN) gained 6.2% and AbbVie Inc. (ABBV) added 5.6%, according to the data. The fund’s top holdings illustrate the range of companies behind the theme. They include BrightSpring Health Services, Inc. (BTSG), which provides home and community-based health services, and MapLight Therapeutics, Inc. (MPLT), a clinical-stage biotech developing treatments for neurodevelopmental conditions, according to ETF Database data. Other top names include Jazz Pharmaceuticals (JAZZ) and Eli Lilly and Co. (LLY), both established drugmakers. Stride, Inc. (LRN), an online education company, and LifeStance Health Group, Inc. (LFST), which operates outpatient mental health clinics, also rank among the fund’s largest positions. Looking ahead, Jablonski pointed to early-stage drug developers working on autism-specific treatments. “I think a lot’s going to shift in biotech,” she said. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for ASD, for which it receives an index licensing fee. However, ASD is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ASD.