The Global X Telemedicine & Digital Health ETF (EDOC) is one of the most impressive stories among this year’s rookie exchange traded funds. But there’s plenty more where that came from, owing to bullish expectations for the healthcare innovation and telemedicine themes heading into 2021.
The Global X Telemedicine & Digital Health ETF (EDOC) seeks to invest in companies positioned to benefit from further advances in the field of telemedicine and digital health. This includes companies involved in Telemedicine, Health Care Analytics, Connected Health Care Devices, and Administrative Digitization.
While the coronavirus pandemic is boosting telemedicine, the momentum was already growing pre-pandemic.
“The coronavirus crisis also accelerated innovation in healthcare services, particularly in telemedicine and in-home care. A six-fold increase in the use of telemedicine services in the first half of 2020 is just the start of what we see as an enduring trend. Hospitals and physicians are increasingly investing in telehealth capabilities, and consumers are warming to this model of care. We see ample room for further adoption after what had been a slow start prior to the pandemic,” according to BlackRock research.
It's Time for Telemedicine
While the Covid-19 pandemic roiled the capital markets, it also opened up pathways for medical technologies to thrive. One of those areas is telemedicine, which could possibly open up the pathway to gains for EDOC.
EDOC has access to dozens of companies with high exposure to the telemedicine and digital health themes. As far as its underlying indexing criteria, the fund connects physicians and patients digitally, facilitating a range of medical activities that include diagnosis, treatment, and medication management, as well as online pharmaceutical services, and internet healthcare platforms (“Telemedicine”).
“Yet innovation is not the only long-run growth driver for the healthcare sector. Aging populations globally, along with increased healthcare spending from emerging market economies, are also key long-term tailwinds,” notes BlackRock. “As innovation continues to advance, people around the world are living longer. And with healthcare costs roughly tripling after age 65, aging demographics worldwide mean increased healthcare spending for years to come.”
EDOC is higher by almost 19% since coming to market in late July.
For more on innovative portfolio ideas, visit our Nasdaq Portfolio Solutions Channel.