- Healthcare Innovation will be one of the megatrends in 2021
- Top performing holdings were spread across Gene Sequencing, Biological
Engineering (Biotech) and Medical Devices.
- COVID-19 is fast-tracking the adoption of healthcare innovations –
driving huge spending in Telemedicine, Healthcare cloud computing and Genome
Sequencing research.
- The Biden administration is likely to unleash large US government
healthcare spending- supporting medical devices and digitalization.
- Innovative healthcare delivery is now a major US policy priority due to
COVID-19.
Performance Review
HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL), our healthcare ETF, enjoyed good
gains in November with a 6.71% return.
For the year 2020, WELL is up 20.57%, with a one-year return of 21.53%.
Healthcare Innovation ETF (WELL) Returns
November
|
YTD*
|
12 Month**
|
6.71%
|
20.57%
|
21.53%
|
Past performance is no guarantee of future performance.
Source: Bloomberg/HANetf
*YTD figures based on 01.01.20 - 30.11.20
** 12 Month figures based on 01.12.19 – 30.11.20
For the month, the leading subtheme contributors to these gains in our healthcare ETF have been in Medical Devices, Biological Engineering (Biotech), Genome
Sequencing and Robotics. These subthemes have enjoyed a rerating during COVID,
becoming increasingly mainstream across healthcare providers.
Illumina, the Gene Sequencing leader gained
10.0%, with other gene players like CRISPR Therapeutics gaining 38.2%, Beam
Therapeutics up 46.3% and Cellectis SA 59.5%. The top performing Biotech plays
include GW Pharmaceuticals, up 55.6%, Akebia Therapeutics up 49.1% and Sysmex
Corp up 11.8%. Please see table on page
3 for full breakdown. Robotics pioneer Intuitive Surgical gained 8.8% for the
month. At 5%, it is WELL’s largest holding, followed by Medtronics, Edwards
Lifesciences, Agilent, Align and Boston Scientific.
Top Medical Device contributors for the month included Edwards
Lifesciences (up 17.0%), Agilent Technologies (14.5%), Medtronic PLC (13.06%)
and Align Technology (13.0%). Medical devices remain the largest subtheme,
weighting in WELL at 58.69%.
For the year, our top performing holdings are Seegene (Medical
Devices up 540.7%), Twist Bioscience (Biotech 432.1%), MicroPort (Medical
Devices 264.2%) and iRhythm Tech (Healthcare Trackers 259.1%.
The COVID-19 pandemic is increasingly mainstreaming many
innovative healthcare treatments, devices and medications, whilst fast-track
approvals is pushing up Biotech stocks. Telemedicine and Healthcare Trackers
continue to enjoy fast adoption rates due to social distancing and new US
insurance policies covering such services. Our Indxx
benchmark has shown solid gains over the past 3years, up 17.0% annualised
returns.
Past performance is
no guarantee of future performance
Source of all data: HANetf, Bloomberg. Data as of 30.11.2020
HAN-GINS Indxx Healthcare
Innovation UCITS ETF – Performance
Total Return NAV to Date (up to
30/11/2020)
|
1M
|
3M
|
6M
|
YTD
|
12M
|
Since Inception
|
HAN-GINS Indxx Healthcare Innovation UCITS ETF (Acc)
|
6.71%
|
3.42%
|
13.68%
|
20.57%
|
21.53%
|
33.96%
|
Indxx Advanced Life Sciences & Smart Healthcare Thematic Indxx (NTR)
|
6.77%
|
3.57%
|
13.98%
|
21.41%
|
22.43%
|
35.69%
|
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 30/11/20
Industry News
The Biden
administration is set to unleash significant government spending across the
healthcare sector – focused on addressing the inequality of healthcare
provision across the US. The adoption of far more digitally enabled healthcare
services covering medical records and telemedicine will be rolled out
throughout 2021. This will boost the need for healthcare and cloud computing to
collaborate far more closely in delivering better healthcare, including remote
medical services. Already there is evidence
of fast-tracking big cloud computing and cybersecurity spending amongst
hospitals and other medical providers. This will help ensure high quality
access to healthcare across the US and ultimately globally.
COVID
is driving health systems to transform and innovate. The private US healthcare
system is embracing virtual/remote care offerings which will increase in the
coming decade. The global Telemedicine market size is projected to reach $185.7bn
by 2026, a CAGR of 23.5% forecast.[1] Frost & Sullivan forecasts a
sevenfold growth in telehealth by 2025 – a five-year compound annual growth
rate of 38.2%.[2]

For illustrative purposes only.
Source: AmWell, June 2020
Constituent News
Our healthcare ETF currently has
107 constituents, with the US country weighting dominating at 80.45%. It is
followed by Japan (5.45%), Switzerland (3.46%), China (2.65%) and the UK (2.28%). Medical devices remain the largest subtheme
in the WELL ETF with a 58.69% weighting, followed by Biological Engineering at
22.57% (includes Biotech). The leading contributors to WELL’s performance
continued to be from these two subthemes, although Gene Sequencing has been
playing an increasingly important role given its rerating during the COVID
pandemic.
Inari Medical has
been added to the portfolio in the September IPO Review. While Livongo Health has merged with Teladoc
Health and has been delisted.
Increasingly smaller cap players are amongst WELL’s leading
contributors. The rerating of healthcare innovation stocks is expected to
continue under a Biden presidency as additional government spending on
healthcare is projected. In particular
innovations in healthcare will be receiving additional funds under Biden.
WELL is likely to benefit from the mainstreaming
of new innovations in the medical space – with more corporate activity expected. Healthcare Trackers, Telemedicine and Biotech
are amongst those subthemes garnering much more demand and likely to continue
to benefit from healthcare innovation efforts in 2021. Fast adoption rates of remote tracker devices
will speed up the provision of effective remote medical services.
Constituent Contribution: Top
Contributors - November 2020
Company Name
|
Sub-Themes
|
Contribution to Fund
|
Return
|
Edwards Lifesciences
|
Medical Devices
|
0.75%
|
17.02%
|
Medtronic Plc
|
Medical Devices
|
0.58%
|
13.06%
|
Agilent Technologies, Inc.
|
Biological Engineering
|
0.47%
|
14.51%
|
Illumina, Inc.
|
Medical Devices
|
0.46%
|
10.04%
|
Intuitive Surgical Inc.
|
Biological Engineering
|
0.39%
|
8.84%
|
Zimmer Biomet Holdings
|
Medical Devices
|
0.38%
|
12.88%
|
Align Technology Inc.
|
Neuroscience
|
0.31%
|
12.96%
|
ResMed Inc.
|
Medical Devices
|
0.30%
|
9.20%
|
Olympus Corp.
|
Medical Devices
|
0.30%
|
13.74%
|
GW Pharmaceuticals
|
Biological Engineering
|
0.25%
|
55.63%
|
Sub-Theme
Contribution:
Sub-theme
|
October
|
Weight on close
(30/11/2020)
|
Medical Devices
|
4.77%
|
58.69%
|
Biological Engineering
|
0.54%
|
22.57%
|
Robotics
|
0.40%
|
5.12%
|
Neuroscience
|
-0.02%
|
6.14%
|
Genome Sequencing
|
0.93%
|
6.12%
|
Bioinformatics
|
0.17%
|
0.27%
|
Healthcare Trackers
|
0.12%
|
1.08%
|
Top 10 Holdings:
Company
|
Weight
|
Intuitive Surgical Inc
|
5.03%
|
Medtronic PLC
|
4.96%
|
Edwards Lifesciences Corp
|
4.83%
|
Agilent Technologies Inc
|
3.86%
|
Align Technology Inc
|
3.74%
|
Boston Scientific Corp
|
3.73%
|
Biogen Inc
|
3.65%
|
Illumina Inc
|
3.58%
|
Regeneron Pharmaceuticals Inc
|
3.34%
|
Zimmer Biomet Holdings Inc
|
3.31%
|
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
|
IE00BJQ848
|
EUR
|
Acc
|
SIX
|
WELL SW
|
WELL.S
|
IE00BJQ848
|
EUR
|
Acc
|
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