Leading Healthcare Innovation Technology ETF highlights gene therapy and telehealth as exciting sub-themes in healthcare
therapy, medical device, biotech and telehealth are the among the most exciting
sub-themes of our healthcare ETF
companies dominate the sector
Sciences, BioNTech, Regeneration and Seegene
are among the companies highlighted in the sector as offering some of the most interesting
opportunities for potential investors
12th November, London
Ginsberg, Co-Creator of The HAN-GINS Indxx Healthcare InnovationUCITS ETF (WELL), which focuses exclusively on the life sciences and smart healthcare
sectors has outlined the themes and stocks in healthcare innovation that he
believes are among the most interesting for potential investors.
Medical Devices remain the largest subtheme in our healthcare ETF, with a 56.84% weighting, followed by Biological Engineering at 23.17%
(includes Biotech), Robotics (5.13%) Neuroscience (6.68%), Genome Sequencing
(5.53%), Healthcare Trackers (2.44%), Bioinformatics (0.19%)). However, there are areas that Anthony and his
team are energized about:
- Gene Therapy: The Gene Therapy market is expected to show a decade
long market growth rate of 31.1%, annualised (CAGR). While the US is currently the largest region
for this sector, some commentators say Asia-Pacific is expected to be the
fastest growing region over the next decade.
- Medical Device
Manufacturers: 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).
- Telehealth: US Government Medicare insurance (reimbursement)
rules have recently broadened to include various telehealth services. This
ensures Medicare insurance will pay for virtual/remote diagnostics and care
now, creating huge demand. Post-COVID, Anthony
expects hospitals to shift a larger volume of patient care to telehealth. Digital health technologies will see accelerated
Our healthcare ETF currently has 107 constituents, with the US
country weighting dominating at 81.0%. It is followed by Japan (5.2%),
Switzerland (3.2%), China (2.9%) and the UK (2.2%).
A growing number of smaller medical device companies
are amongst WELL’s leading contributors.
This is in line with this subtheme enjoying a rerating boosted by the
recent spike and resurgence of COVID cases across the US and Europe.
On the Biotech side, President Trump began using
Regeneron’s new anti-body treatment, helping the stock to a 57% gain for the
year, making it WELL’s 7th largest holding at 3.8% (Bloomberg, 6 October
2020). The US government has also
recently placed a $450m order for the treatment.
COVID-19 is speeding up adoption of Telemedicine,
Medical Wearables, Robotic Surgeries and Biotech. The WELL ETF (104 holdings; 7 subthemes), has
seen holdings across Biotech, Medical Devices and Gene Editing enjoy the
biggest gains. These include Regeneron,
Seegene, Livongo, Biogen, Exact Sciences, Illumina and BioNTech.
The company recently won FDA (US Govt) approval, to
process COVID tests from specimens taken by people at home. It has also been awarded numerous US
statewide contracts for COVID testing.
Along with Pfizer, its COVID vaccine partner, they are
currently scaling up production of one of the world's leading vaccine
Anthony and his team remain bullish on Regeneron based
on the large US government orders they received recently – and White House
endorsement. Their anti-body treatment
appears to show very encouraging signs of helping COVID-19 patients.
Seegene (South Korea)
The company now exports its COVID test kits to over 54
countries – with its global order book growing exponentially.
Anthony Ginsberg said: “The healthcare
industry is transforming in numerous ways, benefiting a number of innovative
healthcare companies. There is an explosion
of telehealth visits, a huge increase in remote inpatient consultations and
family visits, growth in online scheduling and the automation of patient triage,
and greater use of artificial intelligence to allocate resources and make
clinical decisions. Other areas of
growth include supporting remote work and communication for team members, mobilising
teams to create PPE (equipment) and ensuring connectivity at remote COVID-19
testing sites, together with expanding capacity. All of this makes Healthcare Innovation one
of the most exciting areas to invest.”
The HAN-GINS Indxx Healthcare Innovation UCITS ETF(WELL) is a UCITS compliant Exchange Traded Fund domiciled in Ireland. WELL has delivered a 24.14% return over
the past 12 months
Past performance is no guarantee of future performance. When you trade ETFs your capital is at
risk. 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