Some new ETFs get off to solid starts. Others rapidly become the stuff of legend and the Global X Telemedicine & Digital Health ETF (EDOC) is definitely in the latter category.
Still, less than a month old, EDOC is closing in on $300 million in assets under management, confirming that bringing a telemedicine ETF to market at a time when that industry is experiencing a rapid growth spurt was a fine idea.
The Global X Telemedicine & Digital Health ETF (EDOC) seeks to invest in companies positioned to benefit from further advances in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Health Care Analytics, Connected Health Care Devices, and Administrative Digitization.
“Telemedicine’s intersection with the pandemic is relevant because it shows investors a fund like EDOC is relevant today, but also reminds market participants the growth proposition here was in place prior to 2020 and will be strong after the virus is defeated,” according to Nasdaq. “Said another way, as is the case with other high-growth industries, such as e-commerce and fintech, the pandemic is speeding along previously growth in telemedicine.”
EDOC Right for Right Now and Beyond
The fund provides exposure to companies that are well-positioned to benefit from further advances in the field of Telemedicine and Digital Health, including those involved in telemedicine, connected health care devices, health care analytics, and administrative digitization. That results in data from these devices, health applications, and other sources that can offer preventative health benefits when paired with genomic information and data from the broader health community.
Data confirm that EDOC is meeting demands sparked by the coronavirus pandemic.
“Use of telemedicine by US physicians has increased significantly as a result of the COVID-19 outbreak,” said GlobalData. “In a survey conducted by data and analytics company GlobalData, 79% of specialists indicated that their use of telemedicine technology had increased as a result of the pandemic, while 20% indicated that their use had stayed the same.”
Importantly, EDOC will be useful and potentially rewarding to investors after the virus is vanquished.
“COVID-19 may be the tipping point for telemedicine as the full potential of the technology is increasingly realized by patients, healthcare systems, and payers. As a result of the pandemic, regulations, and policies governing reimbursement and use of telemedicine have changed significantly, leading to expanded access and an unprecedented demand for these services,” said Kathryn Whitney, director of thematic analysis at GlobalData.
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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.