- A large number of our Healthcare ETF’s constituents are directly
benefiting from COVID-19 requirements and healthcare changes.
- WELL’s biotech holdings are at the forefront of vaccine research.
- Medical device makers are amongst the biggest suppliers of PPE materials,
ventilators and other respiratory equipment.
- Biological Engineering (Biotech), Robotics and Healthcare Trackers are
key contributors to the July performance of our wellness ETF
Performance Review
HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL) continued
its strong recent growth, gaining 7.33% in July. For the year 2020, our Healthcare ETF is up 15.39%,
while over the past 12 months it has returned 27.51%.
During July, the leading subtheme contributors to the gains have
been in Medical Devices, Biological Engineering (Biotech), Robotics and
Healthcare Trackers.
Biological
Engineering which includes Biotech
players such as Edwards Life Sciences, Regeneron, Boston Scientific, Biogen and
ResMed – remain amongst the Top 10 holdings. The largest contributors to
performance this month included Intuitive Surgical, a leading robotic surgery
player and Livongo Health. Intuitive now has the largest weighting in WELL at
4.91%.
Wellness ETF (WELL) Returns
July |
YTD* |
12 Month** |
7.33% |
15.39% |
27.51% |
Past performance is no guarantee of future performance.
Source: Bloomberg/HANetf
*YTD figures based on 01.01.20 - 31.07.20
** 12 Month figures based on 01.08.19 – 31.07.20
For the month of July, medical devices remained the largest
sub-theme weighting in WELL.
Consequently, it is not surprising it has contributed most of the
subthemes to WELL’s returns in July. However, Robotics, Biological Engineering
and Healthcare Trackers have all shown solid performance – contributing
significantly too. These areas have all benefited from the COVID-19 tailwinds
as a number of our holdings are at the
forefront of vaccine research in
this area.
By the end of July, WELL had hit a new all-time high above $10 per
share*.
*Source: HANetf, Bloomberg. Data as of 19.08.2020
The standout July constituent performers include:
- Seegene,
Inc. (Medical Devices) 133.07%
- Livongo
Health, Inc. (Healthcare Tracker) 69.24%
- Hansa
Biopharma (Biological Engineering) 53.53%
Past performance is
no guarantee of future performance. Source
of constituent data: INDXX. Data as of 31/07/20
HAN-GINS
Indxx Healthcare Innovation UCITS ETF – 12 Month Performance (01.08.19 - 31.07.20)
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 31/07/20
Healthcare Innovation – Industry News
The
healthcare industry is increasingly using remote technology such as
telemedicine, tracking devices, the cloud and robotics. Medical devices that can enhance such needs
are increasingly in demand. Most
recently, Google Cloud invested $100mn in Amwell, one of the largest telehealth
providers. This follows news that its largest competitor, Teladoc, merged with
Livongo, one of our holding, for $18.5 billion [1]. As patients increasingly seek to avoid
in-person medical help at hospitals and clinics, such remote tools facilitating
virtual visits has skyrocketed in recent months.
COVID-19 supply constraints are providing a boom to medical
device and product manufacturers, particularly those focused on PPE &
devices related to the pandemic (e.g. gloves, masks, respirators, ventilators).
With the US Government’s Medicare insurance programme now reimbursing
most telehealth services - this ensures remote/virtual medical care will become
increasingly the norm for those preferring the convenience of home visits for
regular check-ups where possible.
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.
In the U.S., the telehealth market now has an anticipated
five-year compound annual growth rate of 38.2 percent [2]. This equates
to a staggering seven-fold increase by 2025. Furthermore, Telehealth, is
anticipated to rise 64.3% in 2020, according to a
recent Frost & Sullivan report [3].
Constituent News
WELL has 107 constituents,
with the US country weighting dominating at 82.13%. It is followed by Japan
(4.39%), Switzerland (3.01%), China (2.65%) and the UK (2.36%) [4].
Our Healthcare ETF 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 42.93% weighting.
The most notable contributors to WELL’s performance in July
include the following holdings. This is based on their weightings during the
month:
Constituent Contribution
Company Name
|
Sub-Themes
|
July Contribution
|
Intuitive Surgical, Inc.
|
Robotics
|
0.89%
|
Edwards Lifesciences Corporation
|
Medical Devices
|
0.59%
|
Livongo Health, Inc.
|
Healthcare Tracker
|
0.55%
|
Boston Scientific Corporation
|
Medical Devices
|
0.43%
|
Hologic, Inc.
|
Medical Devices
|
0.39%
|
Zimmer Biomet Holdings, Inc.
|
Medical Devices
|
0.38%
|
West Pharmaceutical Services, Inc.
|
Biological Engineering
|
0.36%
|
DexCom, Inc.
|
Medical Devices
|
0.33%
|
ABIOMED, Inc.
|
Medical Devices
|
0.31%
|
Agilent Technologies, Inc.
|
Medical Devices
|
0.29%
|
It is clear the largest contributors are
mostly Medical Device companies. Due to COVID-19
this is expected to continue as the market’s focus remains on finding a
vaccine, plus areas such as testing and tracking.
Sub-theme Contribution
Sub-theme
|
July Contribution
|
Medical Devices
|
5.01%
|
Biological Engineering
|
0.91%
|
Robotics
|
0.92%
|
Neuroscience
|
-0.01%
|
Genome Sequencing
|
0.02%
|
Healthcare Tracker
|
0.55%
|
Bioinformatics
|
-0.06%
|
Healthcare Trackers
|
0.03%
|
Past performance is
no guarantee of future performance. Source
of data: INDXX. Data as of 31/07/20
The
healthcare ETF is positioned to benefit from a number of technological trends
spurred on by COVID. The adoption rates seen over the last 5 months would
typically take place over a number of years. Public and private hospitals are
experiencing a transformation that will last well beyond COVID as behaviours
are changed for good due to technological advances in the following areas:
Telehealth
innovations include:
- User-friendly
sensors and remote diagnostic equipment - yielding a high rate of successful
patient outcomes.
- Practical
applications of artificial intelligence (AI), Interactive Virtual Assistants (IVAs),
and robotics.
- Big data
analytics - helps researchers learn more about the way COVID-19 advances across
diverse patient populations.
- Conforming to
cyber security and privacy regulations - avoiding data breaches.
Additional conveniences and cost
savings will be found in these related areas:
- 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.
Telehealth Market by Region ($bn)
For illustrative
purposes only. Source: https://www.marketsandmarkets.com/Market-Reports/telehealth-market-201868927.html
Constituent Performance
Company
|
Sub-theme
|
July Performance
|
Seegene, Inc.
|
Medical Devices
|
133.07%
|
Livongo Health, Inc.
|
Healthcare Tracker
|
69.24%
|
Hansa Biopharma AB
|
Biological Engineering
|
53.53%
|
Quidel Corporation
|
Biological Engineering
|
26.25%
|
ABIOMED, Inc.
|
Medical Devices
|
24.17%
|
Penumbra, Inc.
|
Medical Devices
|
24.10%
|
Twist Bioscience Corp.
|
Biological Engineering
|
23.71%
|
Hologic, Inc.
|
Medical Devices
|
22.42%
|
Axonics Modulation Technologies, Inc.
|
Medical Devices
|
20.65%
|
MicroPort Scientific Corp.
|
Medical Devices
|
20.52%
|
Intuitive Surgical, Inc.
|
Robotics
|
20.29%
|
Health Catalyst, Inc.
|
Bioinformatics
|
19.64%
|
bioMerieux SA
|
Biological Engineering
|
18.37%
|
West Pharmaceutical Services, Inc.
|
Biological Engineering
|
18.36%
|
Demant A/S
|
Medical Devices
|
17.70%
|
Past performance is
no guarantee of future performance. Source:
INDXX. Data as of 31/07/20
Regional Breakdown
Country Breakdown |
Weights |
United States |
82.13% |
Japan |
4.39% |
Switzerland |
3.01% |
China |
2.65% |
United Kingdom |
2.36% |
Other |
5.46% |
Sector Breakdown
Sub-theme |
Weight |
Medical Devices |
42.93% |
Biological engineering |
0.00% |
Neuroscience |
28.84% |
Healthcare tracker |
4.95% |
Genome sequencing |
6.10% |
Robotics |
11.16% |
Bioinformatics |
0.52% |
Nanotechnology |
0.05% |
Constituent Breakdown
Top 15 Holdings
|
Industry
|
Weights
|
Intuitive Surgical, Inc.
|
Robotics
|
4.91%
|
Edwards Lifesciences Corporation
|
Medical Devices
|
4.67%
|
Boston Scientific Corporation
|
Medical Devices
|
4.48%
|
DexCom, Inc.
|
Medical Devices
|
4.43%
|
Illumina, Inc.
|
Genome Sequencing
|
4.38%
|
Medtronic Plc
|
Medical Devices
|
4.35%
|
Biogen Inc.
|
Neuroscience
|
4.31%
|
Regeneron Pharmaceuticals, Inc.
|
Biological Engineering
|
4.23%
|
Agilent Technologies, Inc.
|
Medical Devices
|
3.29%
|
ResMed Inc.
|
Medical Devices
|
3.23%
|
Zimmer Biomet Holdings, Inc.
|
Medical Devices
|
3.09%
|
BioMarin Pharmaceutical Inc.
|
Biological Engineering
|
2.39%
|
Align Technology, Inc.
|
Medical Devices
|
2.36%
|
West Pharmaceutical Services, Inc.
|
Biological Engineering
|
2.18%
|
Hologic, Inc.
|
Medical Devices
|
1.99%
|
Source of all data: HANetf, Data as
of 31/07/20
Fund Details
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 |
IE00BJQ848 |
USD |
Acc |
London Stock Exchange |
WELP LN |
WELP.L |
IE00BJQ848 |
GBP |
Acc |
Borsa Italiana |
WELL IM |
WELL.MI |
IE00BJQ848 |
EUR |
Acc |
XETRA |
W311 GY |
W311.DE |
DE00A2PE7K4 |
EUR |
Acc |
SIX |
WELL SW |
WELL.S |
IE00BJQ848
|
EUR |
Acc |
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