Defiance launches autism ETF to fund care and research

Defiance ETFs has launched the Defiance Autism Impact ETF (ASD), a passive exchange-traded fund that tracks the VettaFi Autism Impact Index (VASDX). The firm will donate 100% of ASD’s net advisory profits for the first two years to organizations supporting autism care and research.

The index targets publicly traded companies in developed markets that provide products or services for people with autism and the broader neurodivergent community. Eligible firms must demonstrate material involvement in at least one of three thematic pillars: drugs and behavioral therapeutics; diagnostics and assessment tools; or specialized education and educational technology. Covered sectors include healthcare, pharmaceuticals, biotechnology, behavioral services, diagnostics, specialized education and assistive technology.

Constituents are screened using public filings, revenue segmentation and clinical-trial records. To qualify for the index, companies must have a minimum market capitalization of $250 million and a three-month average daily trading value of at least $1 million. The index is equally weighted, reconstituted semi-annually in June and December, and rebalanced quarterly in March, June, September and December. The fund seeks to track the index’s total return through a passive indexing approach.

Defiance built a voluntary impact-investing pledge into the fund. After the initial two-year period of donating 100% of net advisory profits, the firm has committed to donate at least 50% of those profits on an ongoing basis.

VettaFi LLC is the index provider and will receive an index licensing fee. VettaFi is not the issuer, sponsor, endorser or seller of the ETF and has no responsibility for the ETF’s administration or trading.

Matthew Bielski, chief executive of Defiance ETFs, and Gabriella Zahn-Bielski, the firm’s general counsel, described the launch as personal for their family as parents of a profoundly autistic child, expressing an aim to direct long-term capital to companies and organizations that work to improve quality of life for people with autism and their families.

Todd Rosenbluth, head of research at TMX VettaFi, wrote that he felt proud as an individual and noted the fund will be on his radar.

Defiance, founded in 2018 and known for thematic and income-focused ETFs, will add ASD to its lineup, stating it intends to use the fund to connect investors with companies that have identifiable roles in the autism support ecosystem while channeling a portion of advisory profits to nonprofit organizations.