When it comes to disruptive investment ideas, many market participants focus on the technology sector. That’s a sensible approach and not off base, but healthcare offers plenty of positive disruption its own right. One way accessing healthcare disruptors is with the Robo Global Healthcare Technology and Innovation ETF (HTEC).
HTEC seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ROBO Global Healthcare Technology and Innovation Index.
Among healthcare ETFs, HTEC, which debuted last June, often goes overlooked, but it has credentials that prove it shouldn’t be. For example, HTEC is outpacing the largest traditional healthcare ETF by a margin of nearly 4-to-1 this year.
Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth–industries like real estate and manufacturing are already putting the technology to use in a variety of ways.
Hone in on HTEC
“Healthcare is undergoing a dramatic, technology-driven revolution,” according to ROBO Global, HTEC’s issuer. “The convergence of robotics, machine intelligence and life sciences has enabled breakthrough advances from AI-powered diagnostic to minimally invasive robotic surgery, from molecular analysis to DNA sequencing and genetic cancer therapies, from 3D printed implants to virtual care visits.”
The future of healthcare looks more technologically driven as the industry shifts into the digital age from old analog equipment, developing early detection and prevention, with robotics or artificial assisted technicians.
HTEC holdings are analyzed by factors representing levels of revenue a company receives from innovative healthcare technologies, as well as technology and market leadership within the healthcare technology space, resulting in a so-called HTEC Score.
Compared to traditional market cap-weighted benchmarks like the Global Healthcare Index, HTEC is mroe overweight healthcare equipment and supplies, biotechnology, life sciences tools, healthcare technology and technology hardware companies, so the fund is less focused on areas like pharmaceuticals, equipment, supplies, providers and services.
HTEC is up about 17% over the past six months, beating the largest traditional healthcare ETF by about 350 basis points over the same period.
For more on disruptive technologies, visit our Disruptive Technology Channel.
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.