Healthcare

Invest in Global Health Care with This ETF

The Robo Global Healthcare Technology and Innovation ETF (NYSEARCA:HTEC) tracks a proprietary index of global health care technology companies.

HTEC focuses on global health care technology companies that generate a portion of their revenue from the medical and health care technology. The index includes companies Robo Global flags as involved in diagnostics, lab process automation, regenerative medicine, precision medicine, data and analytics, telehealth, robotics, genomics, or medical instruments.

Robo Global selects 50 to 100 companies that score high on revenue from those specific business lines, growth potential and market adoption of the company’s products and services. Index components are weighted based on their proprietary score and rebalanced quarterly.

The exchange-traded fund has amassed $286 million in assets under management with a 0.09% average spread and 83 holdings. It has a 0.68% expense ratio, meaning it is in the low-medium range of inexpensive to expensive funds to hold in relation to other ETFs.

Source: StockCharts.com

HTEC’s share price has experience a whopping 41.6% gain in the trailing 12-month period. As of this writing, it is also available at a discount from recent highs, giving potential investors a good opportunity to get into a hot ETF at a discounted rate.

The investment seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ROBO Global & Healthcare Technology and Innovation Index. The fund will normally invest at least 80% of its total assets in securities of the index or in depositary receipts representing securities of the index.

The index is designed to measure the performance of companies that have a portion of their business and revenue derived from the field of healthcare technology, and the potential to grow within this space through innovation and market adoption of such companies and products and services. It is non-diversified.

However, as with any opportunity, I urge all potential investors to exercise their own due diligence in deciding whether or not this fund fits their own individual portfolio goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Intelligence Report, Investing Edge, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.