Macro Outlook: Healthcare Innovation ETF
- The Global Telehealth market was worth US$90bn in 2021 and is projected to grow to US$636bn by 2028. Equates to a compound annual growth rate of 32%.
For illustrative purposes only.
- Gene Sequencing is increasingly moving into the mainstream of medicine – tackling key diseases such as cancers and COVID.
- With US midterm elections fast approaching – Biden administration’s is expected to adopt a more business friendly approach to Healthcare M&A. (See recent Oracle and Microsoft deals below).
- Big Tech is increasingly active across the Healthcare Innovation space and we expect more Big Tech deals following the Oracle’s $30bn Cerner digital data deal (electronic medical records). [1]
- We observe that healthcare is highly fragmented and labour intensive industry which makes it ripe for Tech Innovation/Disruption.
- With the US baby-boomer generating aging into their 70s and 80s, it is expected that there will be increased healthcare demand.
- Microsoft’s $26bn Nuance Communications acquisition & Google Cloud’s digitalization deal with one of the largest US hospital groups (HCA Healthcare 2000+ locations) – highlights the increasing use of Tech to push Healthcare into the 21st century. [2]
Key Takeaways
- Top monthly contributors to our healthcare innovation ETF include – iRhythm 10.9% (Trackers), Medpeer 2.9% (Telemedicine), SmileDirectClub 2.6% (Telemedicine), Intuitive Surgical 2.0% (Robotics), Medical Data Vision 2.0% (Healthcare Analytics), and Regenxbio 1.1% (Biotech).
- WELL’s returns are driven by Medical Device holdings (27.9% weight), Biotech (26.5%), Genome Sequencing (15.2%), Neuroscience (10.9%) & Telemedicine (7.3%).
- Robotics and Telemedicine were the best Subtheme performers in March, contributing 2.2% and 1.7% respectively to WELL (Source: Indxx table below).
- Subthemes continued wide dispersion of returns in March – Medical Devices down 0.5%, Genome Sequencing losing 8.3% and Healthcare Trackers up 0.5%.
- Holdings are global – US 68.8%, Japan 8.2%, China 5.2%, Switzerland 3.2% and Netherlands 2.1%. (Source: HANetf March 2022; Fact Sheet - WELL)• Hospitals continue to embrace Cloud computing boom – boosting Telemedicine, Wearables, Healthcare Data adoption.
|
Contribution to Return
|
|
Sub-Themes
|
YTD
|
March
|
|
Telemedicine
|
-13.10%
|
1.70%
|
|
Genome Sequencing
|
-35.45%
|
-8.25%
|
|
Medical Devices
|
-9.82%
|
-0.52%
|
|
Neuroscience
|
-9.13%
|
-2.70%
|
|
Bioinformatics
|
-19.05%
|
-4.89%
|
|
Biological Engineering
|
-12.18%
|
0.39%
|
|
Healthcare Analytics
|
-28.25%
|
-6.69%
|
|
Robotics
|
-9.24%
|
2.16%
|
|
Healthcare Trackers
|
-4.58%
|
0.47%
|
Past performance is no guarantee of future performance. Please note that all performance figures are showing net data. Source: INDXX. Data as of 31.03.2022
|
Company Name
|
Sub-Themes
|
March (Contribution to Return)
|
|
IRHYTHM TECHNOLOGIES INC
|
Healthcare Trackers
|
10.91%
|
|
MEDPEER INC
|
Telemedicine
|
2.93%
|
|
SMILEDIRECTCLUB INC
|
Telemedicine
|
2.61%
|
|
INTUITIVE SURGICAL INC
|
Robotics
|
1.95%
|
|
MEDICAL DATA VISION CO LTD
|
Healthcare Analytics
|
1.95%
|
|
REGENXBIO INC
|
Biological Engineering
|
1.07%
|
|
NEXTGEN HEALTHCARE INC
|
Telemedicine
|
1.01%
|
|
DEXCOM INC
|
Medical Devices
|
0.91%
|
|
AMICUS THERAPEUTICS INC
|
Genome sequencing
|
0.82%
|
|
ARCTURUS THERAPEUTICS HOLDINGS INC
|
Genome sequencing
|
0.62%
|
Past performance is no guarantee of future performance. Please note that all performance figures are showing net data. Source: INDXX. Data as of 31.03.2022
HAN-GINS Indxx Healthcare Innovation UCITS ETF – Performance (As of 31.03.22)
|
|
1M
|
3M
|
6M
|
YTD
|
12M
|
2Y
|
3Y
|
SI
|
|
HAN-GINS Indxx Healthcare Megatrend
|
-1.37%
|
-16.50%
|
-22.91%
|
-16.50%
|
-20.89%
|
14.77%
|
NA
|
10.58%
|
|
Indxx Global NextGen Healthcare Index (NTR)
|
-1.40%
|
-16.44%
|
-22.88%
|
-16.44%
|
-20.84%
|
15.50%
|
11.92%
|
12.20%
|
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 31.03.2022. Please note that all performance figures are showing net data.
Learn more about our healthcare innovation ETF here.
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