Obviously, the Coronavirus pandemic is a negative, but there are some positives emerging, including advancements of services and technologies that were growing prior to the outbreak. That includes healthcare innovation, a theme benefiting ETFs such as the Principal Healthcare Innovators Index ETF (Nasdaq: BTEC).
Within the broader healthcare innovation spectrum is telemedicine, a concept that was getting going prior to COVID-19 and one the virus hastened the arrival of to the benefit of healthcare workers and patients. With telemedicine still in its nascent stages, there’s ample runway for growth and that could underscore the already compelling long-term thesis for BTEC.
“Patient volumes were up by 3,000% to 4,000% by mid-March in certain U.S. locations compared to usage before the pandemic, Peter Antall, chief medical officer for the telehealth provider Amwell, said,” reports S&P Global Market Intelligence. “Some providers that rarely deployed or had never offered telehealth have now adopted the services, Antall said.”
Plenty of Staying Power
Vital to BTEC’s telehealth exposure is that this form of doctor/patient interaction will be around long after COVID-19 is defeated.
Since the coronavirus outbreak, health care technology has come to the fore with various innovations to combat the virus. This can only help fuel health care technology exchange-traded funds (ETFs) moving forward from preventative medicine to treatment.
“Telehealth, also called telemedicine, primarily involves the remote delivery of healthcare, such as patient monitoring or using a live video feed to connect patients with specialists sometimes hundreds of miles away,” according to S&P Global Market Intelligence.
BTEC tracks the Nasdaq U.S. Healthcare Innovators Index, which is designed to provide exposure to early-stage small-capitalization healthcare companies. These are primarily biotechnology and life science, which have the potential to create cures for cancer, develop new medical technologies, or spearhead other medical advances. As for share prices, the impact of telemedicine is palpable.
“Teladoc Health Inc., a public telehealth provider, has likewise seen usage soar. While many healthcare companies and most of the U.S. market have suffered during the pandemic, Teladoc’s stock price climbed from $93.52 on Feb. 21 to $221.14 on June 16,” reports S&P Global Market Intelligence.
“Livongo Health Inc., a remote patient monitoring company focused on treating patients with chronic conditions, has seen substantial stock price growth as well. Livongo’s stock price grew from $27.82 on Feb. 21 to $66.52 on June 16.”
Teladoc is a top 10 holding in BTEC.
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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.