The 3D Printing ETF (CBOE: PRNT), the lone ETF focusing on the 3D printing theme, was mostly flat last week, but there are some notable headlines involving the industry that could prove pertinent to PRNT going forward.
PRNT debuted nearly three years ago as the first US-listed ETF dedicated to the 3D printing theme. The fund is one of two passively managed products from New York-based Ark Investment Management. ARK believes 3D printing will revolutionize manufacturing by collapsing the time between design and production, reducing costs, and enabling greater design complexity, accuracy, and customization than traditional manufacturing.
Last week, “Organovo (ONVO) closed up nearly 18% on Monday possibly because investors are anticipating positive news about the company’s plans for a new strategic partnership to maximize the impact of its 3D bioprinting technology,” according to ARK Invest.
Organovo isn’t a PRNT component, but the aforementioned scenario speaks to the myriad growth opportunities 3D printing reaches and the dept of the industry.
Printing Opportunities
Data confirm that the 3D printing market is growing at an exponential rate, indicating PRNT has solid long-term potential.
PRNT’s underlying index index “is composed of equity securities and depositary receipts of exchange-listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing-related businesses within the following business lines: (i) 3D printing hardware, (ii) computer-aided design (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials,” according to Ark.
Adding to the allure of PRNT is that the coronavirus pandemic is highlighting numerous applications for 3D printing in the healthcare market, a trend that’s expected to last well beyond the virus’s expiration date. As regulatory guidelines become clearer, healthcare is expected to be a major market for 3D printing products and services in the years ahead.
Materialise (MTLS), a PRNT component, could benefit when Covid-19 is defeated as more patients return to healthcare centers for elective procedures.
“Materialise expects a slow recovery from its industrial customer base and continued caution from medical customers as hospitals brace for a potential second wave of COVID-19 patients, which could delay elective procedures. As manufacturing activity continues to come back online, ARK believes 3D printing technology is well-positioned to help solve part shortages and shorten supply chains,” according to ARK.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.