The Principal Healthcare Innovators Index ETF (Nasdaq: BTEC) jumped 42% in the second quarter and with telemedicine booming in the healthcare arena, this innovative ETF could just be getting started.

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.

BTEC’s telemedicine exposure is rewarding in the coronavirus environment, but it has vast long-term growth potential.

“The critical need for social distancing among physicians and patients will drive unprecedented demand for telehealth, which involves the use of communication systems and networks to enable either a synchronous or asynchronous session between the patient and provider,” said Victor Camlek, healthcare principal analyst at Frost & Sullivan, as quoted by Healthcare IT News.

BTEC Bets

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.

“In the first quarter of 2020 alone Teladoc Health delivered two million medical visits to people around the world, while simultaneously expanding access to millions of new members,” said Jason Gorevic, chief executive officer. “As our clients and consumers have turned to us during these unprecedented times, our proven ability to meet their needs has elevated our global leadership role and accelerated our impact on the healthcare system overall.”

Teladoc (NYSE: TDOC) is a BTEC holding. Importantly, BTEC is a passive fund with an active index structure, one that removes large-cap and less liquid companies. Conversely, BTEC focuses on research and development-focused firms that have the potential to deliver legitimate disruption. Importantly, there’s a significant runway for growth for BTEC.

“Virtual visits and remote patient monitoring will propel the overall market of telehealth, followed by mHealth and personal emergency response systems,” said Camlek. “Further, patients will benefit if data from RPM is fully available to virtual visit providers. This trend will demonstrate the benefit of integrated services. The trauma resulting from the COVID-19 crisis will lead to a clear growth opportunity for one-stop virtual-visit and RPM solutions.”

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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.