VanEck joins thematic ETF fray with healthcare… Leave a comment
VanEck has added to the sudden avalanche of thematic ETF launches with a new strategy designed to tackle two prevalent, long-term healthcare trends.
The VanEck Genomics and Healthcare Innovators Ucits ETF will primarily invest in a combination of two of the most important themes in the healthcare industry: genomics and digitalisation, the US group said.
Genomics covers the interaction between genes and gene-focused products, which are becoming more common and affordable, VanEck said. This area of healthcare primarily focuses on research and analysis in areas such as cancer, ageing and congenital diseases.
Meanwhile, the second part of the strategy will focus on companies gaining an edge with regards to IT, such as those that came to the fore during the Covid-19 pandemic. This can be through virtual appointments or more efficiency around IT systems in general.
The ETF follows the MVIS Global Future Healthcare ESG index, which tracks the performance of companies contributing to genetic and/or digital applications in healthcare.
Companies generating at least 50% of sales in the following areas are eligible for inclusion in the index:
- Health therapies based on the targeted modification of the genetic code of cells or using mRNA;
- Technology platforms that enable the development of therapies for healthcare based on genetics;
- Laboratory equipment or services used to test, code, or develop genetics-based health therapies;
- Software to facilitate online medical consultations;
- Online pharmacies;
- Software for the management of medical practices and/or patient records;
- Ambulatory medical IoT devices
The accumulating VanEck Genomics and Healthcare Innovators Ucits ETF has a total expense ratio (TER) of 0.35 per cent and is rebalanced semi-annually. It has been listed on the London Stock Exchange and the Deutsche Börse.
