Healthcare has always been a field of captivating news, consistently capturing our attention with its potential to transform lives. At the same time, one day we are told something causes cancer; the next, it cures it. Good fats are beneficial until they’re not, or a groundbreaking discovery emerges from Smartville University that promises to cure dementia, diabetes, or bad breath, only to vanish without a trace. This constant barrage of conflicting information has understandably desensitized many to genuine healthcare innovation.
We all know someone affected by ailments like heart disease, cancer, or Alzheimer’s, or perhaps fear being the next unlucky one. However, it’s hard to approach news of medical advances without a degree of skepticism. This skepticism, though, can lead us to overlook truly proven advancements.
Beneath the noise, the global healthcare landscape is undergoing a profound transformation. An aging population, spiraling treatment costs, and a persistent shortage of skilled professionals are just some of the significant challenges demanding innovative solutions.
Fortunately, real, impactful breakthroughs are happening right now, reshaping how we prevent, diagnose, and treat diseases. Recognizing a critical void in the market, the ROBO Global Healthcare Technology and Innovation Index (HTEC) was conceived in 2019. It provides investors with focused exposure to companies at the forefront of addressing these complex healthcare needs and pioneering these cutting-edge technologies.
Cutting-Edge Healthcare Innovations Happening Today
Cancer detection via blood draw: It is now possible to test for dozens of cancers through a simple blood draw, with products either readily available or in advanced development. Examples include: Guardant Health (GH), GRAIL (GRAL), Natera (NTRA) and Exact Sciences (EXAS).
Healthcare robots: Precision robots perform an ever-growing list of surgeries across general surgery, routine knee replacements and intricate brain surgeries, enhancing outcomes and recovery. Examples include: Stryker (SYK), Intuitive Surgical (ISRG), and Globus Medical (GMED).
AI-assisted health: Artificial intelligence is augmenting diagnostics, accelerating drug discovery, and streamlining operations across the healthcare spectrum. Examples include: Tempus AI (TEM), Veeva Systems (VEEV), Royal Philips (PHG), and Illumina (ILMN).
Gene editing for incurable diseases: CRISPR technology is enabling doctors to edit a patient’s own DNA and reintroduce it, offering a functional cure for previously incurable conditions like sickle cell anemia. Examples include: Vertex (VRTX) and +CRISPR+ (CRSP).
Controlled electric fields for cancer: Innovative devices disrupt cancer cells using precisely controlled electric fields, enhancing the standard treatment in some of the most aggressive cancers. Examples include: Novocure (NVCR).
New solutions for pain: Breakthroughs in nerve repair are directly addressing the root cause of chronic pain from injuries or disease. Separately, novel non-opioid medications are offering powerful new alternatives for pain management. Examples include: Axogen (AXGN), Vertex (VRTX), and Boston Scientific (BSX).
Lab-Made organs: From miniature “organoids” for drug testing to the eventual goal of full transplantable organs, science is building biology. Examples include: Integra LifeSciences (IART) and United Therapeutics (UTHR).
Pharmacy of the future: Automated, robotic pharmacies are eliminating errors, reducing waste, and speeding up medication delivery to patients. Example: Omnicel (OMCL).
Many more innovations: This list offers just a glimpse; HTEC’s portfolio encompasses a vast array of other pioneering technologies transforming healthcare.
A Differentiated Investment Strategy
These revolutionary advancements are not just theoretical; they are being driven by a new generation of companies. HTEC’s investment strategy is based on identifying the most disruptive companies poised to revolutionize healthcare. Unlike traditional healthcare indexes, which often exhibit a heavy concentration in large-cap pharmaceutical entities, HTEC deliberately curates a globally diversified portfolio spanning small-, mid, and large-cap companies. This distinct approach allows investors to gain exposure to the faster-growing, more agile innovators that are often overlooked by conventional benchmarks.
The portfolio’s composition reflects a comprehensive view of the healthcare value chain. It encompasses technological leaders across the spectrum, from prevention and disease detection to the development, delivery, and management of healthcare services. This holistic perspective ensures that HTEC captures the full breadth of innovation reshaping the sector.
Beyond Traditional Index Construction
What sets HTEC apart is its sophisticated methodology, which transcends standard index construction principles. The core of its unique approach lies in the identification of nine specific subsegments deemed critical for addressing the aforementioned healthcare challenges.
Each company considered for inclusion in the HTEC Index undergoes a rigorous scoring process based on key performance indicators. This meticulous scoring ensures that only leaders within each subsector are selected. Furthermore, it ensures that the index is overweight in those companies that most acutely embody the overarching healthcare technology theme.
The Timeliness of HTEC: An Optimal Entry Point
HTEC presents a compelling investment opportunity right now. Valuations have fallen below historical averages, even dipping below COVID-19 lows. Despite recent macroeconomic headwinds, companies within the index have diligently de-risked their balance sheets and heavily invested in next-generation technologies.
As of June 16, 2025, 69.5% of the companies are profitable. Furthermore, 45 companies (74%) have reported positive year-over-year sales growth, with an equal 74% reporting positive year-over-year EPS growth. These strong financials, coupled with robust growth projections, position these innovative companies for significant positive financial performance and valuation upside as market conditions stabilize.
The Inevitable Future of Healthcare
The future of healthcare promises to be profoundly different from what we know today. Concepts once relegated to science fiction are rapidly becoming reality. Many of the advancements once thought futuristic are already here: widespread blood tests for early cancer detection, robots performing highly intricate surgical procedures with unparalleled precision, and artificial intelligence enabling faster, more accurate diagnoses. And these are just a few examples. The companies pioneering these groundbreaking advancements are already integral components of the HTEC Index.
Healthcare is rapidly evolving towards a more preventative, personalized, and technologically enhanced paradigm. HTEC offers investors a unique opportunity to actively participate in and capitalize on this transformative wave of innovation, positioning portfolios to benefit from the healthcare revolution already underway.
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HTEC is the underlying index for the Robo Global Healthcare Technology & Innovation ETF (HTEC) and the L&G Healthcare Technology & Innovation UCITS ETF (DOCT.LN) .
VettaFi is the index provider for HTEC ETF and DOCT.LN, for which it receives an index licensing fee. However, HTEC ETF and DOCT.LN are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of HTEC ETF and DOCT.LN.
