ETF investors looking ahead to 2021 tend to seek out current trends, but the megatrends run much deeper. These are the large-scale undercurrents that can disrupt a whole sector. In the world of health care, this is genomics, immunology, and bioengineering, all encapsulated in a single ETF: the iShares Genomics Immunology and Healthcare ETF (IDNA).
IDNA seeks to track the investment results of the NYSEÂ® FactSetÂ® Global Genomics and Immuno Biopharma IndexTM. The fund generally will invest at least 90% of its assets in the component securities of the index and in investments that have economic characteristics that are substantially identical to the component securities of the index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents.
IDNA gives investors:
- Access to companies at the forefront of genomics and immunology innovation.
- Exposure to global stocks along the full value chain of genomics, immunotherapy, and healthcare industries.
- Long-term growth with companies that can shape the global economic future.
The index is composed of developed and emerging market companies that could benefit from the long-term growth and innovation in genomics, immunology, and bioengineering. The fund is up almost 60% this year.
With Healthcare, Look Beyond COVID-19
With a vaccine already in its implementation phase in the United Kingdom, the well could be running dry for a vaccine rally. There’s no doubt the healthcare sector has been a strong performer this year in the midst of the pandemic, but as the population gets acclimated to a vaccine and the virus hopefully gets under control, IDNA can still bear fruit.
As the population begins to age and the advancement of medical technology allows individuals to live even longer, aging demographics will pour more money into medicinal research.
INDA was one of the three funds selected by a recent Investor’s Business Daily article as a megatrend ETF pick:
“Shares Genomics Immunology and Healthcare (IDNA) is part of the demographics and social change megatrend,” the article said. “This megatrend focuses on the aging population. As the 65-plus age group will spend significantly more on health care in coming years, this will drive huge investment into medical research and development.”
“The fund has amassed over $180 million since its inception in June 2019, over 95% of which came in this year,” the article added.
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