Investing in Global Healthcare with new ETF Issued by TD Asset Management Inc. – Index Provided by Solactive
The COVID-19 pandemic has placed an enormous burden on the infrastructure, workforce, and supply chain of global healthcare providers. Simultaneously, businesses are required to innovate on short notice, catalyzing transformations in the entire healthcare ecosystem. TD Asset Management Inc. (TDAM) has announced the launch of an ETF enabling investors to access this aspiring market, whose expenses account, according to the WHO, for nearly 10% of the global GDP[1]. The TD Global Healthcare Leaders Index ETF (TDOC) seeks to track the Solactive Global Healthcare Leaders Index and started trading on April 14th on the Toronto Stock Exchange.
Investors can participate in this growing sector by investing in TDAM’s new ETF – tracking the Solactive Global Healthcare Leaders Index – that serves as a representation of securities that intend to track the performance of global large and mid-capitalization issuers that are related to healthcare.
The Solactive Global Healthcare Leaders Index tracks companies classified under ‘Healthcare’ by a renowned industry data provider. To avoid an overweighting bias in favor of larger companies, the index imposes a size limit of a maximum of 2% of the whole index composition to any single issuer. The index draws from Solactive’s GBS Developed Markets Large & Mid Cap USD Index. Potential index constituents are subject to a minimum of USD 1,000,000,000 of free-float market capitalization to account for sufficient liquidity.
“Covid-19 accelerated the developments happening in the global healthcare sector. What seemed ‘exotic’ just years ago, e.g., medical consultation via video calls now became acceptable. Advancements like those are just the tip of the iceberg in the developments of the healthcare business,” comments Timo Pfeiffer, Chief Markets Officer at Solactive. “As headway in the healthcare sector is likely to continue, we are very happy to deliver an index that together with TD Asset Management enables investors to participate in this exciting progress.”
Tarik Aeta, Vice President and healthcare analyst at TDAM, comments: “The COVID-19 pandemic has brought the healthcare sector front and centre. But more importantly, looking forward to the years ahead, the secular drivers of demographics and continued innovation, will remain the key drivers of growth for the sector.”
The TD Global Healthcare Leaders Index ETF started trading on April 14th, 2021 on the Toronto Stock Exchange under the ticker symbol TDOC.
[1] https://www.who.int/publications/i/item/9789240017788