- Healthcare is a big beneficiary of Biden’s $1.9
trillion stimulus plan being passed in Congress[1]
- Huge US government healthcare insurance plans are
boosting virtual/digital adoption rates.[2]
- Healthcare to represent
30% of all IoT devices.[3]
- Cloud Computing usage exceeding 20% CAGR through
2024.[4]
Healthcare
Innovation ETF (WELL) Returns
February
|
12 Month*
|
-0.64%
|
35.48%
|
Past performance is no guarantee
of future performance.
Source: Bloomberg, Solactive, HANetf
* 12
Month figures based on 29.02.20 - 28.02.21.
Performance Review
HAN-GINS Indxx Healthcare Innovation ETF (WELL) lost
0.64% in February, but it is still posting a 35.48% gain over 12 months.
The leading subtheme contributors to these gains continues
to be in Medical Devices (up 1.1%) followed by Genome Sequencing, Neuroscience,
Healthcare Trackers and Biological Engineering (Biotech). They represent all of the 10 best performing
holdings in February. For 2021 to date,
Neuroscience’s best performers are led by Prothena (up 85.9%) and Omeros
Corp (39.6%).
The largest February contributors to WELL’s return is led by
the following five medical device companies: Boston Scientific, Olympus
Corp, DexCom, Medtronic PLC and Align Technology. Illumina, the Gene Sequencing leader,
and Biotech firm GW Pharma were also top 10 standouts. Biden’s huge $1.9 trillion stimulus will
boost healthcare spending including traditional medical device leaders.[5] Fast-track adoption of digital medical
services will continue to boost gene editing and remote medicine – driving 2021
gains in Trackers and Telemedicine. [6]
Company Name
|
Sub-Themes
|
January (Contribution to Return)
|
Prothena Corp. Plc
|
Neuroscience
|
99.11%
|
GW Pharmaceuticals
PLC ADR
|
Biological
Engineering
|
40.52%
|
LivaNova Plc
|
Medical Devices
|
23.28%
|
Zepp Health Corporation ADR Class A
|
Healthcare Trackers
|
20.57%
|
InMode Ltd.
|
Medical Devices
|
17.16%
|
Olympus Corp.
|
Medical Devices
|
15.98%
|
Luminex Corp
|
Medical Devices
|
15.77%
|
Nektar Therapeutics
|
Biological Engineering
|
15.18%
|
Demant A/S
|
Medical Devices
|
14.91%
|
Lantheus Holdings Inc
|
Medical Devices
|
14.81%
|
Past performance is no guarantee of future performance.
Source: INDXX. Data as of 28.02.2021
|
1M
|
3M
|
6M
|
YTD
|
12M
|
SI
|
HAN-GINS Indxx Healthcare Innovation
|
-0.64%
|
6.45%
|
10.08%
|
0.39%
|
35.48%
|
42.60%
|
Indxx Advanced Life Sciences & Smart Healthcare Thematic Indxx (NTR)
|
-0.61%
|
6.50%
|
10.30%
|
0.40%
|
36.31%
|
44.51%
|
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 28/2/2021
Industry News
Cost inefficiencies and COVID demands is forcing global healthcare
systems to innovate. Often this means fast-tracking digital health solutions.
Massive cost overruns in the giant US Medicare &
Medicaid programs means Healthcare comprises 20% of US GDP - rising further as
Baby Boomers age.[7]
Cloud-based hospital spending is enjoying a boom - enabling
new health-tech products and services.[8],[9]
Gene Sequencing and Biotech are increasingly mainstream for
healthcare solutions such as vaccines.
This has led to a rerating of holdings in these areas.[10]
Remote Wearables/Trackers and Telemedicine are 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.[11]
New Healthtech 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 108 constituents, with the US country
weighting at 81.6%. It is followed by Japan (4.8%), Switzerland (3.4%), China (2.9%)
and the UK (2.4%). Medical devices are
the largest subtheme in the Healthcare innovation ETF with a 58.5% weighting, followed by
Biological Engineering at 21.6% (includes Biotech), Genome Sequencing (7.5%),
Neuroscience (6.6%) and Robotics (4.9%). 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.
Outlook
Big Tech and medical innovations are disrupting the healthcare
sector, with Telemedicine, Wearables, Gene Editing and AI the most obvious
examples.
Key trends include:
- New Tech speeding up diagnoses, treatment and
access.
- Genetic analysis & Big Data developing
Precision Medicine.
- Adoption of AI & Cloud/Internet of Things
(IoT) - making hospitals smarter.[12]
- Cloud Healthcare CAGR 23% through 2024[13]
- AI helps pandemic detection, vaccine
development, thermal screening, facial recognition & analyzing CT scans.
- Digitization transforming data, diagnostics,
surgical workflows, remote patient monitoring.[14]
- Telemedicine boom >$200bn by 2025.[15]
- Wearables - increasingly use for temperature,
glucose level & blood pressure monitoring.[16]
- Healthcare likely to represent 30% of market
share for IoT devices. (see above for source)
- Blockchain - from Clinical Trials, to Healthcare
Billing to secure electronic medical records, remote patient monitoring,
pharmaceutical supply chain, and health insurance
claims.[17]

For illustrative
purposes only. Past performance is no guarantee of future performance. Source: https://www.businesswire.com/news/home/20200130005458/en/Global-Healthcare-Cloud-Computing-Market-2020-2024-Introduction-of-Blockchain-in-Cloud-Computing-to-Boost-the-Market-Growth-Technavio
Product Details
HAN-GINS
Indxx Healthcare Innovation 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.