Among healthcare ETFs, the Principal Healthcare Innovators Index ETF (BTEC) is one of the names taking the category by storm this year.
BTEC seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq Healthcare Innovators Index.
Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the index at the time of purchase. The index uses a quantitative model designed to identify equity securities in the Nasdaq US Benchmark Index (including growth and value stock) that are small and medium capitalization U.S. healthcare companies.
Right Time for BTEC
What makes BTEC appealing is that the Principal fund is poised to thrive even after COVID-19 is put to bed. For example, telemedicine, one of BTEC’s industry exposures, is benefiting from the pandemic, but it’s slated to deliver exponential growth in the years ahead.
In addition to biotech allocations, BTEC provides exposure to companies that are well-positioned to benefit from further advances in the field of Telemedicine and Digital Health, including those involved in telemedicine, connected health care devices, health care analytics, and administrative digitization. That results in data from these devices, health applications, and other sources that can offer preventative health benefits when paired with genomic information and data from the broader health community.
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.
Healthcare spending made up 18% of U.S. GDP, and it is rising. Looking ahead, by 2020, it is projected that global healthcare spending could shoot up to $8.7 trillion as the industry faces increased challenges from an aging population, rising costs, shortage of skilled workers, dealing with legacy IT, invasive procedures, and medical errors.
We are already seeing the benefits of advances or innovations in the field of medicine, including urology, spinal and orthopedic surgical robots; nerve regeneration from trauma; breast cancer procedures; 3D-printed orthopedic, dental, and cranial implants; and Bluetooth-enabled insulin patches. In the field of genomic research, we are seeing next-gen sequencing and array testing; early diagnosis of cancer without colonoscopies; noninvasive and highly accurate organ rejection screens; gene therapy CRISPR, RNAi, and CAR-T.
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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.