The healthcare sector has been solid in 2020, but the truly impressive gains are coming by way of the companies disrupting the industry. Investors looking to access high-flying names such as CRISPR Therapeutics (NASDAQ: CRSP) and Twist Bioscience (NASDAQ: TWST) should consider innovative strategies such as the Entrepreneur 30 Fund (ENTR).
The Entrepreneur 30 Fund tries to reflect the performance of the Entrepreneur 30 Index, which is comprised of 30 U.S. companies with the highest market capitalizations and composite scores based on six criteria referred to as entrepreneurial standards. ENTR primarily invests in US Large Cap companies that meet the thresholds embedded in their proprietary Entrepreneur Factor (EF).
Looking ahead, CRISPR-based innovations will accelerate given the technology’s ease of use, cost-efficacy, growing body of research surrounding safety, and AI-powered CRISPR nuclease selection tools. CRISPR could also be utilized to address some of the most prominent healthcare problems, which opens up a significant investment opportunity in monogenic diseases.
Companies like CRISP Therapeutics, Twist Bioscience, and Veracyte (NASDAQ: VCYT) can often be overlooked or tossed aside as ‘old guard’ healthcare ETFs, but ENTR’s entrepreneurial approach levers the fund to legitimate healthcare innovation.
Technological Convergence Is Huge for Healthcare ETFs Like ENTR
The convergence of Artificial Intelligence (AI), Next Generation DNA Sequencing (NGS), and CRISPR gene-editing has the potential to boost the efficiency of drug development radically. Breakthroughs in genomic science can present new treatments to help patients recover from what were once believed to be incurable afflictions.
CRISPR can cut DNA/RNA at a single point or in stretches; insert DNA/RNA and create novel gene sequences; activate and silence genes without making permanent changes; regulate protein expression levels epigenetically; record and timestamp biological events; track the movement of specific biological molecules; identify the presence of specific cancer mutations and bacteria; locate molecules without making changes; target and destroy specific viral and bacterial DNA and RNA; interrogate gene function multiplexed, and activate drug release at a specified trigger.
As ERShares Chief Operating Officer Eva Ados points out, ENTR’s healthcare exposure is durable because regardless of the broader economic climate, the sector resonates with investors.
Entrepreneurial companies usually respond well in challenging economic environments, contributing to ENTR’s out-performance of traditional large-cap benchmarks this year.
For more on entrepreneurial strategies, visit our Entrepreneur ETF 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.