ROBO Global launched the ROBO Global Healthcare Technology ETF on the NYSE today. The fund will trade under the ticker HTEC and follow the ROBO Global Healthcare Technology & Innovation Index.
“When developing the ROBO Global Healthcare Technology & Innovation Index, we put an emphasis on analyzing companies making the most dramatic impact on the healthcare sector of today and tomorrow,” said Jeremie Capron, Director of Research at ROBO Global. “Simply put, we are zeroed in on the disruptors rather than the disrupted.”
The 85 index constituents include companies in nine subsectors, including precision medicine and medical instruments. Top holdings include Novocure Ltd (1.89%), Natera Inc (1.88%), Veeva Systems Inc (1.73%), Cardiovascular Systems Inc (1.64%), and Penumbra Inc (1.61%).
“We believe a diversified approach is best because we are still in the very early stages of this technology revolution,” said Capron. “It’s extremely difficult to predict which application and which sub-sector will take off and which will be less successful, and more importantly, when. Spreading our bets across the value chain significantly increases our chances of picking a winner and maintaining good risk-adjusted returns through the cycle.”
“Our investment strategies are built not only by investment professionals but also true industry experts,” said Capron. “We have on our team some of the most prominent thought leaders around robotics, AI, and technology in general that help us shape those investment strategies.”
ROBO Global partnered with Exchange Traded Concepts to launch HTEC, following the team’s introduction of the in 2013, which has cumulatively returned 58.87% since inception.
“By and large, the healthcare industry appears to be primed for massive market growth thanks to the implementation of advanced technologies like robotics and AI,” said Travis Briggs, CEO of ROBO Global U.S. “The healthcare AI market is expected to grow at a compound annual growth rate between 47-50% by 2025, a value of $36 billion.”
Financial advisors who are interested in learning more about health technologies and innovations can watch the webcast here on demand.