In the pantheon of new ETFs, the Global X Telemedicine & Digital Health ETF (EDOC) is on pace to go down as one as of the legends. About a week after coming to market, the fund has nearly $125 million in assets under management, easily making it one of 2020’s most successful new ETFs, thematic or otherwise.
The Global X Telemedicine & Digital Health ETF (EDOC) 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.
Obviously, that rapid asset haul is impressive, Making it even more so is that, last week, EDOC more than doubled in size in the span of two trading days.
The fund 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.
Good Timing
Clearly, EDOC conquers one of the issues facing all new ETFs: timing.
“Obviously, COVID-19 is increasing the allure of telemedicine for doctors and patients alike as visits to hospitals and healthcare facilities for anything but essential treatment are being delayed because of the pandemic. Data confirm the industry’s impressive growth trajectory,” according to Nasdaq.
Some U.S. health care providers report that telehealth visits, defined as consultations in which a patient connects with a doctor via voice or video chat, increased by as much as 175x since the pandemic began. The strain the epidemic put on all aspects of the global health care system highlights broader opportunities to modernize health care by more effectively leveraging technology and digitization.
Vital to the EDOC thesis is that ETF looks like a winner even in a world in which the coronavirus is a thing of the past.
“Beyond COVID-19, EDOC has goods on multiple levels. Telemedicine increases access to quality care for Americans living in rural areas, far away from hospitals. Likewise, the industry does the same for those living in developing countries that lack the advanced, traditional healthcare systems found in developed nations,” notes Nasdaq.
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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.