First Trust Nasdaq Lux Digital Health Solutions ETF (EKG)

ETF First Trust Nasdaq Lux Digital Health Solutions ETF (DHER)

Profile:

DHER is an actively managed ETF that seeks to track the Nasdaq Digital Health Index, focusing on companies engaged in digital health & wellness. It invests primarily in US-listed companies with at least 50% of their revenue derived from the digital health and wellness sector.

Objective:

The primary investment goal of DHER is to provide long-term capital appreciation by investing in companies within the digital health and wellness industry.

Issuer:

First Trust Advisors, L.P. is the issuer of DHER.

Reputation and Reliability:

First Trust Advisors, L.P. is a well-established financial services firm with a strong reputation in the market. The firm has been managing ETFs since 2002 and currently manages over $200 billion in assets.

Management:

The ETF is managed by a team of experienced portfolio managers who have extensive knowledge of the healthcare and technology industries.

Market Share:

DHER is a relatively new ETF with a market share of approximately 1% within the healthcare ETF space.

Total Net Assets:

As of November 13, 2023, DHER has approximately $168.92 million in total net assets.

Moat:

DHER's competitive advantages include its focus on a niche market, active management approach, and experienced management team.

Financial Performance:

Since its inception in 2022, DHER has delivered a total return of 18.45%. Compared to its benchmark, the Nasdaq Digital Health Index, which has gained 22.14% in the same period, DHER has underperformed slightly.

Growth Trajectory:

The global digital health market is expected to grow significantly in the coming years, driven by factors such as increasing adoption of technology in healthcare, rising healthcare costs, and growing demand for personalized healthcare solutions. This growth trajectory bodes well for DHER's future prospects.

Liquidity:

The average daily trading volume for DHER is approximately 26,000 shares. The bid-ask spread is typically narrow, indicating good liquidity.

Market Dynamics:

Several factors can impact DHER's market environment, including economic indicators, sector growth prospects, regulatory changes, and technological advancements in the healthcare industry.

Competitors:

Key competitors in the digital health ETF space include:

• iShares Digital Healthcare ETF (IHAK)
• Global X Telemedicine & Digital Health ETF (EDOC)

Expense Ratio:

The expense ratio for DHER is 0.65%.

Investment Approach and Strategy:

DHER follows an active management approach and invests in companies primarily based on their involvement in the digital health and wellness sector. DHER mainly holds stocks and has a market capitalization weighting methodology.

Key Points:

• Provides exposure to the rapidly growing digital health and wellness sector.
• Actively managed by a team of experienced portfolio managers.
• Has a relatively low expense ratio.
• Offers good liquidity.

Risks:

• The ETF is actively managed, which means it carries higher risk compared to passively managed index-tracking ETFs.
• The underlying companies in the digital health sector are generally small and growth-oriented, which can lead to higher volatility.
• The digital health industry is still evolving, and regulatory changes could impact the companies in which DHER invests.

Who Should Consider Investing:

Investors who believe in the long-term growth potential of the digital health and wellness industry and are comfortable with the associated risks may consider investing in DHER.

Fundamental Rating Based on AI:

Rating: 8.5

DHER receives a high rating based on its strong market position, potential for growth, and experienced management team. The ETF is well-positioned to benefit from the growing digital health market, and its active management approach could generate alpha over time. However, investors should be aware of the associated risks, including higher volatility and the potential for regulatory changes to impact the industry.

Disclaimer:

This information is intended for general knowledge and educational purposes only and does not constitute investment advice. Before making any investment decisions, it is essential to conduct your research and due diligence, consider your risk tolerance and financial situation, and consult with a qualified financial advisor.