Standard practice in the burgeoning universe of thematic exchange traded funds is for a fund to focus on a specific market segment, niche or theme. However, some of the more promising and successful funds in this category address multiple concepts under one roof. That’s the case with the ALPS Disruptive Technologies ETF (CBOE: DTEC).
DTEC tracks the Indxx Disruptive Technologies Index, which identifies companies using disruptive technologies across ten thematic areas, including Healthcare Innovation, Internet of Things, Clean Energy and Smart Grid, Cloud Computing, Data and Analytics, FinTech, Robotics, and Artificial Intelligence, Cybersecurity, 3D Printing, and Mobile Payments.
Beyond the obvious of thematic diversification, an important offered by DTEC is leverage to the intersection of the various themes. What that means is that many disruptive themes have links to each other, something that single theme funds often don’t address.
Hone in on Healthcare
Healthcare innovation, one of DTEC’s themes, is the epitome of a disruptive technology that intersects with other fast-growing themes. Massive disruption is taking the healthcare space by storm. Rapidly evolving technologies are quietly and completely morphing the medical field as we know it. Robotics, artificial intelligence and healthcare innovations are becoming significant change agents across the industry. Then there are the links between healthcare innovation and 3D printing.
“Factors such as growing focus on the advancement of medical products coupled with the rising importance of 3D printing in the healthcare industry are anticipated to contribute significantly towards the growth of the global 3D printing medical implants market,” according to Research and Markets. “Additionally, numerous benefits associated with 3D printing medical implants technology, increasing applications of 3D printing medical implants on the back of growing research and developments, increasing advancements in the healthcare industry coupled with the developments observed in orthopedics giving rise to the concepts of customized bone identical implant and CT-bone are some of the factors anticipated to drive the growth of the global 3D printing medical implants market.”
Advancements in health records keeping and tracking highlight the need for healthcare providers and hospitals to increase cybersecurity protocols, use of cloud computing and embrace Internet of Things (IoT), all of which are DTEC themes.
DTEC healthcare components have the potential to grow within this space through innovation and market adoption of such companies, products and services.
Other funds to consider include the Robo Global Healthcare Technology and Innovation ETF (HTEC), 3D Printing ETF (CBOE: PRNT) and the iShares US Medical Devices ETF (IHI).
For more on cornerstone strategies, visit our ETF Building Blocks 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.
