ROBO Global, the exchange traded funds issuer behind the Robo Global Robotics and Automation Index ETF ROBO, the first dedicated robotics ETF, added to its lineup Tuesday with the debut of the ROBO Global Healthcare Technology and Innovation ETF HTEC.
What Happened
The new ETF tracks the ROBO Global Healthcare Technology & Innovation Index. HTEC can hold 50 to 100 stocks.
“The ROBO Global HTEC Index is composed of companies with a high HTEC score that also pass ROBO Global's Environmental, Social and Governance (ESG) policy requirements,” according to Dallas-based ROBO Global.
The new ETF can feature an array of “growthier” health care companies from industries including diagnostics, medical devices and instruments, genomics, precision medicine, lab automation, data analytics, regenerative medicine and telehealth.
Why It's Important
HTEC looks to marry compelling concepts such as artificial intelligence and robotics, areas that ROBO Global specializes in, with the health care sector.
“The healthcare AI market is expected to grow at a compound annual growth rate between 47-50% by 2025, a value of $36 billion,” said ROBO Global CEO Travis Briggs. “We’re privileged to continue leveraging the knowledge of our distinguished advisory board members, who are on the front lines of industry innovation, to bring the growth potential of these technologies directly to investors.”
Alone, HTEC's genomics exposure is potentially compelling and wide-ranging because that market features exposure to industries such as CRISPR, stem cells, targeted therapeutics, molecular diagnostics and more.
Currently, HTEC's underlying index features 85 components from nine industries. The index is rebalanced quarterly, a strategy ROBO Global believes keeps the benchmark's growth tilt fresh.
What's Next
“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 Briggs.
The new HTEC charges 0.68% per year with the fee waiver, or $80 on a $10,000 investment.
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