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Equal Weight Monthly Report | October

 

Equal Weight ETF Monthly Report: Key Takeaways

 

  • Areas of the healthcare space that have emerged since the pandemic include Wearables, Gene Sequencing, Biotech, Healthcare Analytics and Telemedicine.
  • US Healthcare ripe for Tech upgrades, represents almost 20% of US GDP. Huge inefficiencies still. [1]
  • Expect higher valuations particularly in the Genomics, Biotech, Wearables, Analytics and Telemedicine space. [2]
  • Google and Microsoft recent deals (HCA & Nuance) - Healthcare digitized data/analytics key target. [3]
  • Hospitals amongst the fastest adopters of Cloud technology, boosting their commitment to Telemedicine and Wearables. [4]
  • Wearables providing real-time tracking of various aspects of health, including sleep and physical activity - seeing surge of investment. 
  • Standout subthemes for 2021 returns: Neuroscience up 47.4%, Medical Devices 15.2%, Healthcare Analytics 6.7% and Biological Engineering (Biotech) 4.2%. [5]
  • Ten subthemes, with Equal Weight across all 105 current holdings.  
  • EU Article 8 ESG approval now secured. 
  • Increasingly global – with the US at 70%. Japan 7.8%, China 4.4% and Europe 13.7%.

 

Macro Outlook

  • Telemedicine subtheme surpassed $60.9bn in 2020 - estimated to grow at 18.2% between 2021 and 2027. Increasing prevalence of chronic disease and growing need for patient management. [6]
  • North America dominates Telemedicine – at approximately double the size of Europe and 6 times larger than Asia-Pacific. [7]
  • Global DNA sequencing market size was valued at USD 4.7 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 11.4% from 2020 to 2027. Rapid advancements in sequencing technology and bioinformatics – enabling the identification of DNA variations. [8]
  • Next-generation sequencing techniques are expected to play a key role in providing timely and accurate diagnosis of cancer in its early stages. [9]
  • CRISPR makes it easier to determine the genes and proteins that cause/prevent disease. It helps identify new targets for potential drugs. [10]

 

Top Subtheme Contributions

 

 

Contribution to Return

Sub-Themes

YTD

September

Telemedicine

-22.55%

-6.44%

Genome Sequencing

-6.84%

-8.29%

Medical Devices

15.24%

-4.13%

Neuroscience

47.35%

-8.39%

Bioinformatics

-15.37%

-10.58%

Biological Engineering

4.17%

0.46%

Healthcare Analytics

6.71%

-7.30%

Robotics

-11.39%

-4.58%

Healthcare Trackers

-53.77%

-1.84%

Past performance is no guarantee of future performance. Source: INDXX. Data as of 30.09.2021. Please note that all performance figures are showing net data.

WELL’s benchmark continues to benefit from large holdings across three key subthemes which are all above 20% weightings. These include Genome Sequencing. Medical Devices and Biological Engineering (Biotech).

Cloud Healthcare market is expanding rapidly across hospitals and is likely to dominate IT spending in this space for the next few years. [11]

Cybersecurity spending is also likely to see a big increase in the healthcare space as privacy concerns and potential hacks, increasingly concern most hospital groups.

Equal Weight ETF - Performance

 

1M

3M

6M

YTD

12M

2Y

SI

HAN-GINS Indxx Healthcare Megatrend

-5.03%

-5.95%

-2.61%

0.98%

11.91%

47.99%

43.44%

Indxx Global NextGen Healthcare Index (NTR)

-5.04 

-6.02%

-2.65%

-1.08%

12.14%

49.59%

45.49%

Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. Source: Bloomberg / HANetf. Data as of 30/09/2021. Please note that all performance figures are showing net data. 

 

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