The Goldman Sachs Future Health Care Equity ETF (GDOC) debuted last month as the newest addition to an expanding realm of exchange traded funds focusing on disruptive healthcare concepts.
That could amount to good timing for the rookie ETF because the coronavirus pandemic shined a light on the importance of evolving healthcare services and treatments. Moreover, the ongoing pandemic spotlights the ongoing need for the intersection of healthcare and technology — a theme GDOC offers exposure to.
Many investors don’t know it yet — GDOC can help them get there — but healthcare is arguably one of the most innovative sectors after technology, and many professional investors realize that.
“Crunchbase estimates that healthcare technology companies have raised a record-breaking $36.6 billion globally from 2020 through October 2021. That sizable mountain of cash offers myriad opportunities for innovation in 2022 and beyond,” reports Bill Siwicki for Healthcare IT News.
Emerging innovative healthcare companies, some which will attain unicorn status, are relevant in the GDOC conversation because the fund is actively managed, meaning that if some of these upstarts go public, they could find their way onto the ETF’s roster. Additionally, healthcare consolidation is expected to be vibrant in 2022, indicating that some GDOC components could be on the prowl for smaller, nimble companies to bolster product portfolios.
What’s clear is that a new a dawn is breaking in healthcare, and it’s rooted in technology. Not all ETFs are in line with that trend, but GDOC is.
“The first wave of innovation in that space involved allowing providers to communicate with patients via chat, video, photo-uploads and texting. Those abilities have now become standard fare – patients expect them, and all providers will have to offer them,” said Emocha Health CEO Sebastian Seiguer in an interview with Healthcare IT News. “The next wave is the dawn of digital-first clinics with a primary care focus, while offering certain specialties – such as physical therapy, cardiology, maternity or behavioral health. These providers are interacting with patients in a mix of bricks-and-mortar and virtual care models.”
Adding to the long-term case for GDOC is the fact that healthcare innovation requires substantial investment. However, as innovation accelerates, costs decline, and that should compel more healthcare providers and systems to embrace the products and services offered by GDOC member firms. The new Goldman Sachs ETF holds 63 stocks and charges 0.75% per year, or $75 on a $10,000 stake.
For more news, information, and strategy, visit the Future ETFs 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.