XShares Advisors LLC (XShares), a registered investment adviser developing precisely focused, innovative exchange traded funds (ETFs), today announced that the Board of Directors of its flagship ETF family, HealthShares™, Inc., has approved a reorganization of the 19 HealthShares ETFs currently listed for trading on the NYSE ARCA. XShares also announced changes to a number of its proprietary HealthShares indexes that will affect the portfolios of HealthShares ETFs.

The redesigned HealthShares suite of ETFs will include four of the current HealthShares ETFs—each of which is expected to carry a significantly lower expense ratio—the closing of 15 HealthShares ETFs now trading, and the expected introduction of new HealthShares ETFs in the coming months. Changes in the composition of the proprietary HealthShares indexes will result in the remaining HealthShares ETFs holding a greater number of constituent companies and generally higher minimum capitalization requirements.

“Healthcare and life sciences remain the most exciting sectors for investment in the global economy,” said Joseph L. Schocken, Chairman and Interim Chief Executive Officer of XShares Group, Inc., parent company of XShares Advisors. “We believe that significant, untapped demand exists for specialized healthcare investment vehicles that focus on the innovation taking place outside the sector’s large-cap and mega-cap companies.”

After taking a long, careful look at the HealthShares ETFs and the healthcare sector, these strategic redesigns reflect a sharper differentiation in the investment rationales of the continuing HealthShares ETFs. “In addition,” continued Mr. Schocken, “we also pared back those ETFs that didn’t resonate with investors.