While the Covid-19 pandemic roiled the capital markets, it also opened up opportunities for medical technologies to thrive. One of those areas is telemedicine, which could possibly open up the pathway to gains for the Global X Funds – Telemedicine and Digital Health ETF (EDOC).
“The demand for telemedicine has significantly increased due to the cost savings opportunity offered by the technology,” a West Virginia News article noted. “It also reduces the need for patients to visit an emergency room and the costs associated with the same. As per a study published in healthaffairs.org (2017), the average cost of a telemedicine visit is $79 while the average doctor’s visit is $149 and the average trip to the emergency room is $1,734.”
“As the demand and popularity of telemedicine grows, many health insurance plans are also starting to provide coverage for teleconsultations,” the article added. “In the U.S., many states such as Arkansas, Delaware, Georgia, and Hawaii, have laws established that require health insurance plans to reimburse remotely delivered care at the same rate as in-person doctor visits.”
Of course, even as economies look to re-open, the wildcard will continue to be Covid-19. With workarounds for social distancing like telemedicine, it’s become an integral part of health care services.
“With the ongoing COVID-19 pandemic, telemedicine services have become a critical asset for the healthcare community,” the article noted. “The telemedicine services can provide efficient delivery of care especially for populations and patients affected by the COVID-19 infection, especially when under active quarantine. Under these critical times, these services can significantly help healthcare systems to reduce resource usage across the stressed health-care infrastructure, ameliorates access to care, and reduces the risk of direct person-to-person transmission of the infectious agent.”
As for the EDOC ETF, it seeks to invest in companies positioned to benefit from further advances in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Health Care Analytics, Connected Health Care Devices, and Administrative Digitization.
The fund offers investors the following:
- High Growth Potential: EDOC enables investors to access high growth potential through companies at the leading edge of a structural trend affecting the global health care industry.
- Unconstrained Approach: EDOC’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, EDOC delivers access to dozens of companies with high exposure to the telemedicine & digital health theme.
Additionally, for more market trends, visit ETF Trends.