- The fight to combat COVID-19 has led to over 20 of WELL’s constituents
directly benefiting from increased demand.
- WELL’s holdings are at the forefront of vaccine research, plus supplying
PPE materials and producing ventilators and other medical devices.
- Biological Engineering (Biotech), Genome Sequencing and Healthcare
Trackers/Wearables have all been key contributors to the June performance of
our wellness ETF
Performance Review
HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL) hit a new
all-time high in late June, posting another record gain of 1.37%.
For the year 2020, our wellness ETF is up 7.52%, while over the
past 12 months it has returned 18.77%. During June, the leading subtheme
contributors to the gains have been in Biological Engineering, Genome
Sequencing and Healthcare Trackers (See table on next page).
Biological Engineering which includes Biotech players such as Regeneron, had a very positive
June, contributing 1.2% of performance to WELL. The search for a COVID-19
vaccine has propelled this subtheme’s performance.
For the month of June, this Biological Engineering theme has
dominated all other subtheme performance – contributing 1.16% out of WELL’s
1.37% total gain. It is followed by Genome Sequencing with a far smaller 0.20%
gain. Both areas have benefited from the
COVID-19 tailwinds as a number of our holdings are at the forefront of vaccine
research in this area.
The standout June performers were as
follows: Accelerate Diagnostics (Genome) was up 82%, followed by Meridian
(Biological) 50.7%, MicroPort (Devices) 39.3%, Hansa Biopharma (Biological) up
40.0%, TransMedics (Biological) 36.7%, Huamai Corp (Trackers) 31.5%, Quidel
(Biological) 27.9%, Shandong (Devices) 27.2%, Intra-Cellular Therapies (22.9%)
and Resmed (Devices) 19.4%.
Past performance is
no guarantee of future performance
Source: INDXX. Data as of 30/06/20
Wellness ETF (WELL) Returns
June
|
YTD*
|
12 Month**
|
1.37%
|
7.52%
|
18.77%
|
Past performance is no guarantee of future performance.
Source: Bloomberg/HANetf
*YTD figures based on 01.01.20 - 30.06.20
** 12 Month figures based on 30.06.19 – 30.06.20
Sub-theme
Contribution to WELL
Sub-theme Performance
|
YTD
|
June
|
Biological Engineering
|
6.85%
|
1.16%
|
Healthcare Tracker
|
0.57%
|
0.08%
|
Neuroscience
|
-0.17%
|
-0.70%
|
Nanotechnology
|
0.01%
|
0.00%
|
Bioinformatics
|
-0.02%
|
0.01%
|
Genome Sequencing
|
0.83%
|
0.20%
|
Robotics
|
-0.21%
|
-0.08%
|
Medical Devices
|
-0.07%
|
-0.11%
|
Past performance is
no guarantee of future performance
Source: INDXX. Data as of 30/06/20
HAN-GINS
Indxx Healthcare Innovation UCITS ETF - 1YR Performance (28.06.19 - 30.06.20)
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: INDXX. Data as of 30/06/20
Constituent News
WELL has 107
constituents, with the US country weighting dominating at 82%.
WELL recently underwent a re-balance on 30th June
with 10 new additions and 5 deletions. The new additions represent a diverse
group covering the following subthemes: Genome Sequencing, Biological
Engineering, Robotics, Healthcare Trackers, Medical Devices, Neuroscience and
Bioinformatics.
Medical devices remain the largest subtheme in the WELL ETF
with a 43% weighting – see the full weightings on page 5.
Notable
contributors to WELL performance in June include:
Quidel: Specialises in the diagnostics and detection
of diseases and offers very fast turnaround times. This places it in an elite
group of COVID-19 players able to assist with the infectious disease outbreak.
In March, Quidel became one of the first companies to receive ‘Emergency Use
Authorization’ from the US Food and Drug Administration for a COVID-19
diagnostic test.
Dexcom: Offer an
alternative for diabetes suffers – beyond using fingersticks, to check their
blood sugar levels. DexCom's G6 continuous glucose monitoring (CGM) system uses
a small easy-to-wear sensor and transmitter. This wearable sends glucose
numbers to a smart device every five minutes and provides alerts when levels
are too high or too low.
Accelerate Diagnostics: This medical device company tests for bacteria and fungus
infections in hospitals and patients. When hospital patients are invaded with
bacteria or fungus, they can suffer from extreme immune response known as sepsis. This is one of the leading causes of
hospitalisations in the US. With hospitalisation spiking due to COVID-19 this
firm is benefiting from increased sepsis testing.
Meridian: One of its reagents is being used in a
number of different tests for the coronavirus.
It is extremely stable, can be easily stored and can be conducted
quickly and/or remotely – a key feature with coronavirus testing. Since the
outbreak, it is considered a ‘coronavirus stock’ because its goods are being
used by over 35 diagnostic companies around the globe for testing during the
pandemic. [1]
Healthcare Innovation – Industry News
COVID-19 supply constraints are providing a boon to medical
device and product manufacturers, particularly those focused on PPE &
devices related to the pandemic (e.g. gloves, masks, respirators, ventilators).
Fisher & Paykel, another WELL holding (up 23.5% in June), is a leading
supplier of respiratory equipment - which has seen a big rise in demand, due to
the current pandemic’s supply constraints.
Before COVID-19, usage of telehealth services was estimated
to be in the single digits in the US - largely in the areas of mental health.
However, according to a survey from IMS Health (US healthcare data provider) -
telehealth services used by clinicians surged past 50% in April. [2]
US Government Medicare insurance (reimbursement) rules have recently
broadened to include various telehealth services. This ensures Medicare
insurance will pay for virtual care now, creating huge demand. Post-COVID,
analysts expect hospitals to shift a larger volume of patient care to
telehealth. We expect digital health technologies to see accelerated adoption.
Digital pharmacies should deliver opportunities for investors, and major
e-commerce companies will likely speed up entry into the health-care
marketplace.
We predict the healthcare industry transforming in the
following key areas, benefiting a number of innovative healthtech companies
along the way:
- An explosion of telehealth visits.
- Huge increase in remote inpatient consultations and family
visits.
- Online scheduling and the automation of patient triage.
- Artificial intelligence to allocate resources and make
clinical decisions.
- Supporting remote work and communication for team members.
- Mobilising teams to create PPE (equipment).
- Ensuring connectivity at remote COVID-19 testing sites and
expanding capacity.
We believe that the WELL ETF is positioned to benefit from these
trends.
Top June Performance Contributors
(Holdings)
Company Name
|
Sub-Themes
|
June
|
Adaptive Biotechnologies Corp.
|
Genome Sequencing
|
0.11%
|
Align Technology, Inc.
|
Medical Devices
|
0.33%
|
Alnylam Pharmaceuticals, Inc
|
Biological Engineering
|
0.16%
|
BeiGene, Ltd. Sponsored ADR
|
Biological Engineering
|
0.19%
|
BioMarin Pharmaceutical Inc.
|
Biological Engineering
|
0.33%
|
DexCom, Inc.
|
Medical Devices
|
0.19%
|
Fisher & Paykel Healthcare Corporation Limited
|
Medical Devices
|
0.28%
|
Hologic, Inc.
|
Medical Devices
|
0.14%
|
Olympus Corp.
|
Medical Devices
|
0.25%
|
Quidel Corporation
|
Biological Engineering
|
0.10%
|
Past performance is
no guarantee of future performance
Source: INDXX. Data as of 30/06/20
Region Breakdown
Country Breakdown
|
Weights
|
United States
|
81.40%
|
Japan
|
5.65%
|
Switzerland
|
2.78%
|
United Kingdom
|
2.53%
|
China
|
2.45%
|
Other
|
5.18%
|
|
|
Sector Breakdown
Sub-theme
|
Weight
|
Medical Devices
|
43.33%
|
Biological engineering
|
32.39%
|
Neuroscience
|
9.93%
|
Healthcare tracker
|
5.37%
|
Genome sequencing
|
4.74%
|
Robotics
|
4.08%
|
Bioinformatics
|
0.10%
|
Nanotechnology
|
0.05%
|
Top 15 Holdings
|
Industry
|
Weights
|
Regeneron Pharmaceuticals, Inc.
|
Biological Engineering
|
6.5%
|
DexCom, Inc.
|
Medical Devices
|
4.6%
|
Biogen Inc.
|
Neuroscience
|
4.2%
|
Intuitive Surgical, Inc.
|
Robotics
|
4.1%
|
Edwards Lifesciences Corporation
|
Medical Devices
|
4.1%
|
Illumina, Inc.
|
Genome Sequencing
|
3.9%
|
Agilent Technologies, Inc.
|
Medical Devices
|
3.6%
|
ResMed Inc.
|
Medical Devices
|
3.5%
|
Medtronic Plc
|
Medical Devices
|
3.5%
|
Boston Scientific Corporation
|
Medical Devices
|
3.2%
|
Zimmer Biomet Holdings, Inc.
|
Medical Devices
|
3.1%
|
BioMarin Pharmaceutical Inc.
|
Biological Engineering
|
2.8%
|
Olympus Corp.
|
Medical Devices
|
2.7%
|
Align Technology, Inc.
|
Medical Devices
|
2.6%
|
Smith & Nephew plc
|
Medical Devices
|
2.0%
|
Source of all data: HANetf, Data as
of 30/06/20
Learn more about HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL)
HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL) is a UCITS compliant Exchange Traded Fund domiciled in Ireland.
WELL tracks the Indxx Advanced Life Sciences & Smart Healthcare Thematic Index (Net Total Return), an index designed to measure the performance of large, mid and small-capitalisation companies primarily listed on an exchange in Developed and Emerging Markets that are involved in the Advanced Life Sciences & Smart Healthcare sector.
Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance.
EXCHANGE
|
BB CODE
|
RIC
|
ISIN
|
CURRENCY
|
INCOME
|
London Stock Exchange
|
WELL LN
|
HAWELL.L
|
IE00BJQTJ848
|
USD
|
Acc
|
London Stock Exchange
|
WELP LN
|
WELP.L
|
IE00BJQTJ848
|
GBP
|
Acc
|
Borsa Italiana
|
WELL IM
|
WELL.MI
|
IE00BJQTJ848
|
EUR
|
Acc
|
XETRA
|
W311 GY
|
W311.DE
|
DE00A2PE7K4
|
EUR
|
Acc
|
SIX
|
WELL SW
|
WELL.S
|
IE00BJQTJ848
|
CHF
|
Acc
|