Finding the right tech exposure is hard these days, with so much concern about rising rates and fear since last year’s broad market selloff that hit tech so hard. Innovation keeps moving forward, whether the market environment is turbulent or not. One tech area that is seeing some important innovation is 3D printing, an intriguing space that’s accessible in an ETF like the 3D Printing ETF (PRNT).
Investors may think 3D printing is limited to producing small plastic widgets or designs they’ve seen in short videos online, but the potential of 3D printing extends to almost all parts of our modern lives. 3D printing in medicine can rapidly put together human skin, as in 2018 when 3D printing was used in a kidney transplant to save a child. 3D printing can streamline component replacement in planes, trains, or cars, or even in producing something as intricate as a circuit board.
Last week’s Consumer Electronics Show or “CES” tradeshow allowed several 3D printing companies to show off their latest advances. Firms promoted solutions like new software suites to ramp up production across a fleet of printers, while companies like Neutrogena from Johnson & Johnson (JNJ) touted personalized 3D-printed skin health supplements.
PRNT invests in firms poised to benefit from advances in 3D printing. ANSYS, Inc. (ANSS), its third-largest holding, has made some product acquisitions and announcements since the start of the new year that have seen the stock rise by 1.8% over the last five days.
PRNT tracks the Total 3D-Printing Index and has outperformed its three-month and one-month ETF Database Category Averages, returning 2.3% and 6.6% respectively. PRNT charges a 66 basis point fee, with other names in its portfolio including Dassault Systems (DSY) at a 3.9% weight and the BICO Group (BICO) as its largest weight at 9.2%, according to VettaFi.
3D printing’s numerous use cases, across all types of industries, make it a durable tech space that can kick on with further innovation. For investors looking for some amount of tech exposure for 2023, PRNT may be one 3D printing tech ETF to watch moving forward.
For more news, information, and analysis, visit the Disruptive Technology Channel.