- COVID continues to fast track digital healthcare
adoption rates.
-
Large number of WELL’s holdings benefiting from
increased COVID spending and insurance coverage.
-
Cloud-based Hospital spending booms, enabling
new health-tech products and services.
-
Gene Sequencing and Biotech has been rerated due
to the Pandemic and sources for vaccines.
- Remote Wearables/Trackers and Telemedicine are showing
the most impressive growth rates.
- Biden’s administration is set to unleash huge US
government healthcare spending.
Healthcare
Innovation ETF (WELL) Returns
January
|
12 Month*
|
1.03%
|
32.45%
|
Past performance is no guarantee
of future performance.
Source: Bloomberg, Solactive, HANetf
*12
Month figures based on 31.01.20 - 31.01.21.
Performance Review
HAN-GINS
Indxx Healthcare Innovation ETF (WELL) gained 1.03% in January – posting
a 32.45% gain over 12 months.
The leading subtheme contributors to these gains continues
to be in Medical Devices, Genome Sequencing, Biological Engineering (Biotech) and
Neuroscience. They represent all of the 10 best performing holdings in January. Biotech’s main contributors were led by
Quidel (up 39.7%), GW Pharma (32.1%) and BeiGene Ltd (23.8%), plus Regeneron
(4.3%).
Device
makers who contributed most included Penumbra (up 49.2%), Accelerate
Diagnostics (35.4%), MicroPort Scientific (29.3%), InMode Ltd (24.0%) and Anglo
Dynamics (22.2%).
Other
key contributors include Genome leader Myriad Genetics (up 39.3%) and Neuroscience
firm Omeros Corporation (up 36.2%).
These subthemes have all enjoyed reratings due to COVID’s recent second
surge. Expected healthcare spending by
the Biden administration has boosted medical devices. Fast-track adoption of digital medical
services, gene editing and remote medicine drove gains in Trackers and Telemedicine.
Past
performance is no guarantee of future performance.
Source of all data: Bloomberg / HANetf. Data as of
31.01.2021
Top Performing Constituents
Company Name
|
Sub-Themes
|
January 2021 Return
|
Penumbra, Inc.
|
Medical Devices
|
49.19%
|
Quidel Corporation
|
Biological Engineering
|
39.70%
|
Myriad Genetics, Inc.
|
Genome Sequencing
|
39.32%
|
Omeros Corporation
|
Neuroscience
|
36.23%
|
Accelerate Diagnostics, Inc.
|
Medical Devices
|
35.36%
|
GW Pharmaceuticals PLC Sponsored ADR
|
Biological Engineering
|
32.11%
|
MicroPort Scientific Corp.
|
Medical Devices
|
29.32%
|
InMode Ltd.
|
Medical Devices
|
23.97%
|
BeiGene, Ltd. Sponsored ADR
|
Biological Engineering
|
23.84%
|
AngioDynamics, Inc.
|
Medical Devices
|
22.24%
|
Past
performance is no guarantee of future performance. Source: INDXX. Data as of 31.01.2021
HAN-GINS Indxx Healthcare Innovation
UCITS ETF
– Performance
As of 31.01.21
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
HAN-GINS Indxx Healthcare Innovation
|
1.03%
|
14.33%
|
11.94%
|
1.03%
|
32.45%
|
43.52%
|
Indxx Advanced Life Sciences & Smart Healthcare Thematic Indxx (NTR)
|
1.02%
|
14.41%
|
12.13%
|
1.02%
|
33.31%
|
45.40%
|
Performance before inception is based on back tested data.
Back testing is the process of evaluating an investment strategy by applying it
to historical data to simulate what the performance of such strategy would have
been. Back tested data does not represent actual performance and should not be
interpreted as an indication of actual or future performance. Past performance
for the index is in USD. 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: Bloomberg / HANetf. Data as of 31/01/2021
Industry News
COVID is forcing
healthcare systems to innovate, fast-tracking digital health adoption rates. Cloud-based
hospital spending is enjoying a boom and enabling new health-tech products and
services. Gene Sequencing and Biotech areas
are seen as increasingly mainstream for healthcare solutions such as
vaccines. This has led to a rerating
across these areas.
Remote
Wearables/Trackers and Telemedicine is experiencing a huge surge due to private
and government insurance now covering such procedures. Telemedicine is on track to grow by over 30%
annualised between 2021-2025[1]

For illustrative purposes only. Source: https://www.emarketer.com/content/us-telemedicine-users-will-surpass-40-million-this-year
New Health-tech
products and services are benefiting from the growth of Machine Learning (ML),
and the Cloud/Internet of Things (IoT). These key areas of growth include:
- Digital
medical devices
- Cloud-based
healthcare (includes remote monitoring, telemedicine, wearables)
- Genomics
Editing/Sequencing
- AI
and deep learning
Constituent News
WELL currently has 110 constituents,
with the US country weighting at 81.1%. It is followed by Japan (4.9%),
Switzerland (3.4%), China (3.1%) and the UK (2.3%). Medical devices are the largest subtheme in
the WELL ETF with a 57.0% weighting, followed by Biological Engineering at 22.8%
(includes Biotech), Genome Sequencing (7.5%), Neuroscience (6.6%) and Robotics
(4.88%). The leading contributors to WELL’s performance included two Neuroscience
firms – Biogen and Neurocrine Biosciences (see table).
A number of midcap holdings are amongst
WELL’s leading contributors. Subthemes
that contributed most to this month’s performance are: Biological Engineering (Biotech), Genome
Sequencing and Neuroscience.
These subthemes are expected to benefit
from significant increased US government healthcare spending under a Biden
presidency. Faster adoption rates of digital healthcare due to COVID – continue to
boost WELL’s holdings in the device and biotech areas.
Top Contributors- January 2021
Company Name
|
Sub-Themes
|
January (Contribution to Return)
|
Illumina, Inc.
|
Genome Sequencing
|
0.70%
|
Biogen Inc.
|
Neuroscience
|
0.70%
|
Quidel Corporation
|
Biological Engineering
|
0.39%
|
Penumbra, Inc.
|
Medical Devices
|
0.35%
|
Alnylam Pharmaceuticals, Inc
|
Biological Engineering
|
0.32%
|
BeiGene, Ltd. Sponsored ADR
|
Biological Engineering
|
0.28%
|
Regeneron Pharmaceuticals, Inc.
|
Biological Engineering
|
0.19%
|
Neurocrine Biosciences, Inc.
|
Neuroscience
|
0.19%
|
Hologic, Inc.
|
Medical Devices
|
0.17%
|
GW Pharmaceuticals PLC Sponsored ADR
|
Biological Engineering
|
0.14%
|
Sub-Themes
|
January Return
|
Weighting
|
Bioinformatics
|
0.1%
|
0.52%
|
Biological Engineering
|
0.9%
|
22.79%
|
Genome Sequencing
|
0.8%
|
7.53%
|
Healthcare Trackers
|
-0.1%
|
0.70%
|
Medical Devices
|
-0.5%
|
57.01%
|
Neuroscience
|
0.8%
|
6.56%
|
Robotics
|
-0.4%
|
4.88%
|
Past
performance is no guarantee of future performance. Source: INDXX. Data as of 31.01.2021
Outlook
Healthcare
Cloud spending has allowed Telemedicine to flourish during COVID. This is only expected to grow due to the
convenience factor. Globally most
mainstream medical insurance plans now include insurance for Telemedicine. In the US this is predicted to lead to a
triple-fold increase in the number of such patients by 2023 to 64 million, from
just 21 million in 2019. The annual
growth rate in 2020 was almost 100%.[2]
Past performance is no guarantee of future performance.
We also expect
Gene Sequencing and Robotics players (Intuitive Surgical) to enjoy significant
growth as genomics become increasingly mainstream across the medical field: robotic surgery leads to less infections and
reduced hospital stays. Healthcare
Trackers/Wearables are increasingly popular too. We expect Big Tech to become increasingly
active in this space.
Product Details
HAN-GINS
Indxx Healthcare Innovation ETF (WELL) is a UCITS compliant Exchange
Traded Fund domiciled in Ireland.
The Healthcare Innovation ETF 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.
Visit
the WELL Fund Page for more information.
