ETF issuers First Trust Advisors has announced that it has launched a new ETF, the First Trust Nasdaq Lux Digital Health Solutions ETF (Nasdaq: EKG).
The fund seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an index called the Nasdaq Lux Health Tech Index, which provides exposure to companies focused on healthcare technology innovations in medical and surgical devices, clinical diagnostics, healthcare-related business/productivity software or some other healthcare technology identified as digital health.
“The health care sector is leveraging technology in new and innovative ways that have the potential to both raise our standard of living and improve patient outcomes,” says Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust. “We believe EKG will appeal to investment professionals seeking exposure to some of the most innovative stocks at the intersection of health care and technology,” Issakainen says.
The Nasdaq Lux Health Tech Index (NQHTEC) was launched on July 19, 2021, in partnership with Lux Capital, a venture capital firm focused on emerging science and technology, with the primary goal of constructing a new, differentiated benchmark of publicly-listed companies that are leading the integration of cutting-edge technology across numerous areas within the healthcare industry. The profile of index constituents spans across biotech, medical devices, software, medical services, and diagnostic tools, offering investors exposure to key areas of health technology such as genomics, proteomics, advanced therapeutics, and digital health.
“We’ve spent years obsessed with deep technology innovation taking place at the intersection of industries at health and technology and beyond. As we’ve seen recently, the outputs of incredible advancements and acceleration in healthtech meaningfully impact society,” says Peter Hébert, co-founder and managing partner of Lux Capital. “We apply a similar level of analysis to the selection and monitoring of companies within NQHTEC and look forward to seeing the fund reflect that methodology.”
Cameron Lilja, Vice President and Global Head of Index Product for Nasdaq, says: “We are seeing rapid innovation and digital transformation in the healthcare industry, exacerbated by the COVID‐19 pandemic. These technological advancements have the potential to improve the quality of healthcare services and enhance the industry’s ability to deliver healthcare to the individual. Our index offers investors a unique and compelling solution for tracking this highly relevant and exciting theme, and our work with Lux and First Trust provides access to this theme for the investing public.”