The 3D Printing ETF (PRNT ), the lone ETF focusing on the 3D printing theme, jumped nearly 5% last week and is closing in on new highs. Importantly, there were multiple fundamental reasons for PRNT’s surge in the week ending Aug. 28.
Organovo (ONVO), which isn’t a PRNT holding, but is a biotechnology company with 3D printing emphasis, may have chipped in a bit on PRNT’s rally following a reverse split.
“Now its shares are trading well above $1.00, lowering the risk of a NASDAQ delisting. Investors and speculators may be gaining confidence in Organovo’s ability to maximize its 3D-bioprinting assets and deliver on a revitalized commercial strategy,” according to ARK Invest. “We believe the shares will be volatile until Organovo reveals more about its path forward.”
PRNT’s underlying index index “is composed of equity securities and depositary receipts of exchange-listed companies from the U.S., non-U.S. developed markets and Taiwan that are engaged in 3D printing-related businesses within the following business lines: (i) 3D printing hardware, (ii) computer-aided design (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials,” according to Ark.
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Materialise (MTLS), which is a PRNT holding, surged 15% last Tuesday, contributing to the ETF’s upside on the week.
That move arrived “perhaps because of the increased interest in 3D printing medical equipment and devices during the COVID-19 pandemic and because of pending and highly valued initial public offerings (IPOs) in the space. With a focus on health care, Materialise sells 3D printing software, services, and parts. As the pandemic subsides, 3D printing could benefit from increased adoption as companies respond to inventory shortages by 3D printing parts and products and reorganizing supply chains to prevent future disruptions,” according to ARK.
Adding to the allure of PRNT is that the coronavirus pandemic is highlighting numerous applications for 3D printing in the healthcare market, a trend that’s expected to last well beyond the virus’s expiration date. As regulatory guidelines become clearer, healthcare is expected to be a major market for 3D printing products and services in the years ahead.
ExOne (XONE), PRNT’s largest component at a weight of 6.16%, capped the strong week for the ETF.
That stock “closed up more than 15% on Friday, perhaps because of increased investor interest in 3D printing, specifically binder jetting, as Desktop Metal plans to go public. Today (Friday) ExOne’s CEO John Hartner posted a statement welcoming the competition in binder jetting and asserting that the industry was likely to grow at a 25-20% compound annual growth rate in the years ahead,” notes ARK.