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.
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.