Data confirm populations in some of the world’s largest economies are getting older, a theme that brings with it ample investment opportunity. One avenue for harnessing that theme is with the ETF Global X Longevity Thematic ETF (LNGR ).
LNGR, which turns three years old in May, follows the Indxx Global Longevity Thematic Index. The ETF “seeks to invest in companies positioned to serve the world’s growing senior population through exposure to health care, pharmaceuticals, senior living facilities and other sectors that contribute to increasing lifespans and extending quality of life in advanced age,” according to Global X.
Traditionally, the idea of investing around the aging population theme has involved tapping the healthcare sector, but LNGR goes beyond standard healthcare ETFs, which are usually heavily focused on pharmaceuticals stocks. There’s also a data-driven element to LNGR’s appeal.
“The Health Care sector is a perfect narrator for data, even more so when hooked up to the Internet of Things (IoT),” said Global X in a recent note. “Internet-connected devices used by pharmaceutical, medtech, and health service providers offer myriad opportunities to collect, analyze, and utilize patient data. Application of that data can improve preventative medical care as well as treatments for symptoms and disease.”
Opportunity with LNGR ETF
There are increasing intersections between the healthcare and technology and those intersections make LNGR a compelling long-term avenue to unique healthcare investing.
“AI-powered delivery mechanisms and services can help revolutionize clinical research, make more accurate diagnoses, and inform individual treatment plans. The wearables segment is another area to watch,” notes Global X.
Industry observers argue that medical technology companies can tap into increased healthcare spending among emerging economies while the U.S. market has matured and could experience slower growth. Looking ahead, in the years through 2024, spending growth is projected to average 5.8% and peak at 6.3% in 2020.
“Health care distribution channels could get a shot in the arm if new mobility enhances supply delivery,” according to Global X research. “Autonomous transportation is set to provide health care systems with increased access to more efficient distribution channels, allowing clinical supplies to get from supplier to provider to patient more efficiently and at a lower cost.”
For more on thematic ETF strategies, please visit our Thematic Investing Channel.