Healthcare Innovation ETF benefits from healthcare changes linked to COVID-19
21 September, 2020
Constituents of the HAN-GINS
Indxx Healthcare Innovation UCITS ETF (WELL) continue to work at the forefront
of the COVID-19 pandemic. Biotech constituents of the WELL innovative healthcare ETF, are leading vaccine research, as well as medical device constituents
being amongst the biggest suppliers of PPE materials, ventilators and other
WELL healthcare ETF constituents continuing to benefits from COVID-19 requirements and
healthcare changes, with Biological Engineering (Biotech), Robotics, and
Healthcare Tracker constituents also being key contributors to its recent
strong performance, gaining 1.03% in August, 7.33% in July and for the
year it is up 32.46%. Past performance is no guarantee of future performance.
When you invest in ETFs your capital is at risk.
The standout August constituent
performers included iRhythm Technologies, Inc (Healthcare Trackers) 76.88% and Silk
Road Medical, Inc (Medical Devices) 31.25%. The best performers in July were
Seegene, Inc. (Medical Devices) 133.07%; Livongo Health, Inc. (Healthcare
Tracker) 69.24% and Hansa Biopharma (Biological Engineering) up 53.53%.
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 .
Anthony Ginsberg, Co-creator of
the HAN-GINs Indxx Healthcare Innovation ETF (WELL) says: “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 ecommerce 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.3 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.
“This is an exciting time to
be invested in healthcare innovation.”
The WELL innovative healthcare ETF is a UCITS compliant Exchange Traded Fund which is listed on the LSE,
XETRA, SIX and Borsa Italiana. It 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
Past performance is no guarantee of future performance. When you invest
in ETFs your capital is at risk.
Read the September Healthcare Innovation Report.