Lessons From the Coronavirus Crisis to Fuel Growth in Healthcare Innovation

Anthony Ginsberg, Co-creator of the HAN-GINs Indxx Healthcare Innovation ETF (WELL) says the Coronavirus crisis has exposed many flaws in the US and other healthcare systems, which has proven a boost for innovative healthcare companies.

The crisis has highlighted the benefits of streamlined regulation and innovation in areas such as telemedicine and digital health technologies.

The WELL ETF creator said: “Tech companies will play a bigger role in meeting the need for greater transparency of data and individual electronic health records. Trends to watch include accelerated development of The Individual Patient Record, as health-care companies build data registries. Also, the use of wearables and other consumer-facing technology may increase post-pandemic, integrating data from these devices with individual medical records.”
 

The HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL) is a UCITS compliant Exchange Traded Fund which is listed on the LSE, XETRA, SIX and Borsa Italiana.

It tracks the Indxx Advanced Life Sciences & Smart Healthcare Thematic Index (Net Total Return), an index designed to measure the performance of large, mid and small-capitalisation companies primarily listed on an exchange in Developed and Emerging Markets that are involved in the Advanced Life Sciences & Smart Healthcare sector.

The WELL fund saw growth of 23.98% in the last 3 months, and for the last 12 months it has increased in value by 18.77%⁽¹⁾. WELL’s NAV reached an all-time high of $9.41 on Friday 3^rd July (Source: Bloomberg).

_{Past performance is no guarantee of future performance. When you invest in ETFs your capital is at risk.}
 

Re-balance

WELL underwent a re-balance on Tuesday 20^th June with 10 new additions and 5 deletions.  The new additions represent a diverse group covering the following subthemes – Genome Sequencing, Biological Engineering, Robotics, Healthcare Trackers, Medical Devices, Neuroscience and Bioinformatics.

Medical devices remain the largest subtheme in the WELL ETF with a 54% weighting – followed by Biological Engineering (25%), Neuroscience (7%), Genome Sequencing (6%) and Robotics (5%) [2].
 

Key themes in the healthcare sector:

Ginsberg has identified several key themes that will support further growth in the healthcare innovation sector:
 

Medical device and product manufacturers

Supply constraints are providing a boon to medical device and product manufacturers, particularly those focused on PPE & devices related to the pandemic (e.g., gloves, masks, respirators.
 

Telehealth / Virtual care

Companies providing virtual services are becoming the standard of care in this environment as providers are limiting in-person visits to acute, emergency cases.
 

Home health

Companies providing in-home care have seen volume increase as self-quarantine becomes more pervasive across the country and the globe.

He says that before COVID-19, usage of telehealth services was estimated to be in the single digits in the US – largely in the areas of mental health. However, according to a survey from IMS Health (US healthcare data provider) – telehealth services used by clinicians surged past 50% in April. ⁽³⁾

Also, US Government Medicare insurance (reimbursement) rules have already broadened to include various telehealth services. This ensures Medicare insurance will pay for virtual care now. Post-COVID, analysts expect hospitals to shift a larger volume of patient care to telehealth.

Anthony Ginsberg said “Digital health technologies could see accelerated adoption. Digital pharmacies could deliver opportunities for investors, and major e-commerce companies will likely speed up entry into the health-care marketplace.”

In summary, the WELL ETF founder says key future Healthcare changes that will fuel growth in innovative Healthtech companies include:
 

• An explosion of telehealth visits
• Remote inpatient consults and family visits
• Online scheduling and the automation of patient triage
• Artificial intelligence to allocate resources and make clinical decisions
• Supporting remote work and communication for team members
• Mobilizing teams to create PPE (equipment)
• Ensuring connectivity at remote COVID-19 testing sites and expanding capacity

About the HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL)

HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL) is a UCITS compliant Exchange Traded Fund domiciled in Ireland.

WELL tracks the Indxx Advanced Life Sciences & Smart Healthcare Thematic Index (Net Total Return), an index designed to measure the performance of large, mid and small-capitalisation companies primarily listed on an exchange in Developed and Emerging Markets that are involved in the Advanced Life Sciences & Smart Healthcare sector.
 

About HANetf

HANetf is an independent provider of UCITS ETFs, working with asset management companies to bring differentiated, modern and innovative exposures to European ETF investors. Via our white-label ETF platform, HANetf provides a complete operational, regulatory, distribution and marketing solution for asset managers to launch and manage UCITS ETFs.
 

www.hanetf.com.    For further details on BTCE, please visit HANetf.com or contact HANetf on:

Tel: +44(0) 203 794 1800, Email:  info@hanetf.com