ETF issuer VanEck has listed the VanEck Genomics and Healthcare Innovators UCITS ETF on the London Stock Exchange and the German Xetra Stock Exchange. The firm writes that the new ETF allows investors to invest in a combination of two of the most important themes in the healthcare industry: Genomics and digitalisation.
Genomics is a branch of science that studies the interaction between genes and gene products, the firm says. “Genetic treatments, which have once been considered experimental and expensive, are becoming more affordable and common,” explains Martijn Rozemuller, CEO at VanEck Europe. The genomics industry, which targets prominent topics such as the treatment of cancer, ageing and congenital diseases, is still in the early stages of its development and thus still offers great potential.
In addition, the healthcare industry, which was lagging behind in adopting IT solutions before the pandemic, has seen a surge in digitalisation over the past two years. “Face-to-face meetings with patients were no longer an option, and digital solutions were able to prove their everyday viability in the healthcare industry,” Rozemuller explains. “So far, however, digital solutions are still far from widespread. We assume that there is still room for further growth.”
Companies must generate 50 per cent of their revenue from a list of eight topics
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, adding to the family of impact ETFs VanEck offers in Europe. From inception, companies that generate at least 50 per cent of their 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.
