Technology is changing the future of healthcare. Genomics and e-healthcare are shaking up antiquated health systems. VanEck’s Genomics ETF invests in the innovative companies harnessing scientific advances to develop breakthrough treatments and give patients more control over how they access care.
Risks of the ETF: You may lose money up to the total loss of your investment due to the Main Risk Factors such as Industry or Sector Concentration Risk and Liquidity Risks described below, in the KID and in the sales prospectus. Evolving of the market not guaranteed.
The size of the healthcare market is gigantic. In America alone, it consumes 18% of GDP, equivalent to $3.6trn a year.1 In other wealthy countries, the share is lower, around 10%, but it is increasing as populations age. Just as science is developing new gene therapies, so too the pandemic has made people comfortable with digitally-mediated care. That means healthcare is ripe for disruption.
1 How health care is turning into a consumer product. The Economist. 15 Jan 2022.
Scientific advances promise to revolutionize healthcare. Not only does gene sequencing have huge potential for the treatment of cancer, old-age and in-borne diseases, but also AI is improving areas such as diagnostics. Turning to e-healthcare, digital technologies are being deployed to transform the productivity of healthcare and even for preventative wellness apps.
In the future, healthcare will be more proactive, predictive and personalized. A sharper focus on ‘wellness’ is designed to be predictive, for instance with wearable devices encouraging good habits while monitoring health. Meanwhile, enormous scientific advances are allowing treatment to be personalized for better outcomes.
Technology is shrinking costs. In genomics, newer technologies are cutting the costs of the latest treatments and making them more widely available. Turning to telemedicine, as people become more willing to speak with a doctor over the internet, so this too is reducing costs.
Through tracking the companies driving healthcare’s future, our Genomics ETF aims to generate returns for investors. Such is the nature of healthcare’s modernization that it also brings clear social benefits through improved medical care and wider access to treatments.
This risk exists when a particular financial instrument is difficult to purchase or sell. If the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous or reasonable price, or at all. This is a factor to consider before investing in a Genomics ETF.
The prices of the securities in the Fund are subject to the risks associated with investing in the securities market, including general economic conditions and sudden and unpredictable drops in value. An investment in the Fund may lose money.
The Fund’s assets may be concentrated in one or more particular sectors or industries. Genomics ETF may be subject to the risk that economic, political or other conditions that have a negative effect on the relevant sectors or industries will negatively impact the Fund's performance to a greater extent than if the Fund’s assets were invested in a wider variety of sectors or industries.
