If the ongoing pandemic has taught anything, it’s the need for healthcare innovation. That’s exactly what the Principal Healthcare Innovators ETF (BTEC) is all about.
The growth opportunities were plenty for healthcare innovation in 2021. Startups were able to raise capital with seemingly relative ease last year.
“Health investing in New York City hit a historic high in 2021 as 182 health and life sciences startups raised a total of $9 billion, according to the 2022 New York Healthcare Innovation Report released Tuesday by the New York City Health Business Leaders,” a MedCityNews article says.
As mentioned, the pandemic has had a profound influence on the way healthcare is delivered. Social distancing measures forced healthcare providers to deliver medical information digitally and take advantage of the internet to its fullest extent.
2021 in particular saw digital startups procure a considerable amount of investment funding. As more companies look to innovate in the way they administer care, that will open the eyes of investors looking for growth opportunities.
“For 2021, 87% of funds raised went to digital health startups,” the article adds. “And much of that investment went to companies focused on virtual care, patient engagement and mental health.”
The long-term horizon for the healthcare sector shows strength, particularly when looking at the past five years. The Morningstar Healthcare Sector index is up close to 90% within this timeframe.
Looking at a different index, the Nasdaq Health Care Index may be closer to showing a growth component in healthcare. While it’s not as high as the aforementioned Morningstar index, it’s still up 50%.
High Growth Potential
BTEC seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq Healthcare Innovators Index, which uses a quantitative model designed to identify equity securities in the Nasdaq US Benchmark Index that are small- and medium-capitalization U.S. healthcare companies.
Fund features:
- High growth potential: Seeks to tap into the increasing demand for healthcare solutions as demographic trends have driven healthcare spending to more than double in the last 20 years.
- Specialized healthcare solution: Brings an efficient, systematic approach to identifying and selecting smaller healthcare companies that many investors neglect.
- Early-stage access: Invests in companies that are leading the charge toward innovative solutions, rather than spending money on marketing and distribution.
For more news, information, and strategy, visit the Nasdaq Investment Intelligence Channel.