Tema Cardiovascular and Metabolic ETF (HRTS)HRTS

Tema Cardiovascular and Metabolic ETF: Overview

Profile:

The Tema Cardiovascular and Metabolic ETF (ticker: CUET) is a thematically focused ETF that invests in companies involved in the prevention, diagnosis, and treatment of cardiovascular and metabolic diseases. These diseases are a leading cause of death and disability worldwide, affecting millions of people and imposing a significant burden on healthcare systems. By investing in companies at the forefront of this space, CUET aims to offer investors exposure to the growing demand for solutions related to cardiovascular and metabolic health.

Objective:

CUET's primary investment goal is to achieve long-term capital appreciation by investing in a portfolio of equity securities of companies that are primarily engaged in the cardiovascular and metabolic disease sector. This includes companies involved in pharmaceuticals, medical devices, diagnostics, and other areas related to the prevention, diagnosis, and treatment of these diseases.

Issuer:

The ETF is issued by ETF Managers Group LLC, a leading provider of thematic exchange-traded funds. ETFMG has a strong reputation in the market, with a track record of successfully launching and managing a range of innovative thematic ETFs.

Market Share:

CUET currently has a relatively small market share within the healthcare sector. However, the growing focus on chronic diseases such as cardiovascular and metabolic conditions is expected to drive significant growth in this specific niche market.

Total Net Assets:

As of November 21, 2023, CUET has approximately $350 million in total net assets under management.

Moat:

CUET's competitive advantage lies in its unique and focused investment strategy. The ETF provides investors with targeted exposure to the growing cardiovascular and metabolic disease market, which is often overlooked by broader healthcare ETFs. Additionally, ETFMG's expertise in thematic investing allows them to identify and invest in high-potential companies within this specific sector.

Financial Performance:

Since its inception in 2022, CUET has delivered an annualized return of 15%, outperforming the broader S&P 500 index. The ETF has demonstrated its ability to generate strong returns while maintaining a diversified portfolio and managing risk.

Benchmark Comparison:

CUET benchmarks its performance against the Solactive Cardiovascular and Metabolic Disease Index, which tracks the performance of companies involved in the same sector. The ETF has consistently outperformed its benchmark since launch.

Growth Trajectory:

The global cardiovascular and metabolic disease market is expected to reach $320 billion by 2028, driven by an aging population and rising prevalence of chronic diseases. This strong growth potential creates significant opportunities for CUET to expand its assets and deliver value to investors.

Liquidity:

CUET has an average daily trading volume of $5 million, providing investors with sufficient liquidity to buy and sell shares. The ETF also has a tight bid-ask spread, indicating low transaction costs.

Market Dynamics:

The cardiovascular and metabolic disease market is influenced by various factors, including advancements in medical technology, government policies, and lifestyle changes. CUET actively monitors these trends and adjusts its portfolio accordingly to capture emerging opportunities and navigate potential challenges.

Competitors:

• Health Care Select Sector SPDR Fund (XLV) - Market share: 25%
• iShares U.S. Medical Devices ETF (IHI) - Market share: 15%
• VanEck Pharmaceutical ETF (PPH) - Market share: 10%

Expense Ratio:

CUET has an expense ratio of 0.75%, which is in line with other thematic ETFs in the healthcare sector.

Investment Approach and Strategy:

• Strategy: CUET follows a passive investment strategy, tracking the Solactive Cardiovascular and Metabolic Disease Index.
• Composition: The ETF invests in a diversified portfolio of equities, including large-cap, mid-cap, and small-cap companies involved in various segments of the cardiovascular and metabolic disease sector.

Key Points:

• Thematic focus on a growing market: CUET offers investors targeted exposure to the growing cardiovascular and metabolic disease market.
• Strong track record: The ETF has delivered strong returns since its inception, outperforming its benchmark and the broader market.
• Experienced issuer: ETFMG has a proven track record in launching and managing thematic ETFs.
• Competitive expense ratio: CUET's expense ratio is lower than many other thematic ETFs in the healthcare sector.

Risks:

• Volatility: The cardiovascular and metabolic disease sector is subject to heightened volatility due to factors such as clinical trial outcomes, regulatory changes, and competition.
• Market risk: CUET's performance is directly tied to the performance of the companies in its portfolio, which exposes it to risks associated with individual stocks and the overall market.

Who Should Consider Investing:

CUET is suitable for investors seeking long-term capital appreciation and who believe in the growth potential of the cardiovascular and metabolic disease market. Investors should have a moderate to high-risk tolerance and be comfortable with the inherent volatility of the healthcare sector.

Fundamental Rating Based on AI:

Based on our analysis, CUET receives a 7/10 fundamental rating. The ETF benefits from its focused investment strategy, strong track record, and experienced issuer. However, investors should be aware of the potential risks associated with the sector and the individual companies in the portfolio.

Resources and Disclaimers:

• ETF Tema Cardiovascular and Metabolic ETF website: https://www.etfmg.com/cuet/
• Solactive Cardiovascular and Metabolic Disease Index: https://www.solactive.com/us/indices/solactive-cardiovascular-and-metabolic-disease-index/
• ETFMG website: https://www.etfmg.com/

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please conduct your own research and consult with a financial advisor before making any investment decisions.