Nina Deka, Senior Research Analyst, ROBO Global, discusses ROBO Global’s HTEC ETF, and the way it capitalizes on the opportunity for innovation in the healthcare industry.
There are numerous problems facing the healthcare industry, including the shortage of healthcare workers, likelihood of medical error, and outdated IT systems. The examination of the barriers that healthcare faces creates the opportunity for innovation, and the HTEC ETF provides investors with early exposure to this transformation.
The revitalization of the healthcare industry will primarily include digitization, decentralization in the form of virtual care, precision medicine and therapeutic innovation, and prevention of disease using predictive analytics. HTEC takes advantage of this widespread modernization by diversifying across sectors.
“HTEC has nine different sub-sectors that essentially capture all of the innovation that is happening in the healthcare industry,” says Deka. These sectors include data analytics, precision medicine, genomics, robotics, medical instruments, and regenerative medicine.
The COVID-19 pandemic vastly accelerated the adoption of virtual care, which has been predicted to underlie every facet of healthcare in the next 5-10 years. Additionally, there is consistent space for the innovation of medical treatment, as doctors continue to develop new methodology and tech.
HTEC is a unique portfolio that provides comprehensive coverage of everything that is disrupting healthcare and will continue to disrupt healthcare for the next ten years. HTEC has its largest weight, 26%, in medical instruments, followed by diagnostics and precision medicine. It overlaps 4.47% with the S&P 500 Index, 3.67% in the MSCI ACWI Index, and 15.53% in the Healthcare Indices (x42). Last year, HTEC returned over 65% for the full year. This year, it has returned just over 10% and slightly above the S&P Global Healthcare Index, which has returned just under 10%.
Founded in 2013, ROBO Global is an index, advisory, and research company that seeks out new, disruptive technologies that are overlooked by the broader investment community.
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