Horizon Kinetics Medical ETF (MEDX)

ETF Horizon Kinetics Medical ETF (HLTH) Summary:

Profile:

ETF Horizon Kinetics Medical ETF (HLTH) is an actively managed exchange-traded fund that invests in global healthcare companies. The fund focuses on innovative companies developing or utilizing disruptive technologies in various segments of the healthcare industry, including pharmaceuticals, biotechnology, medical devices, and healthcare IT. HLTH utilizes a diversified approach across market capitalization, focusing on mid-cap and small-cap companies with high growth potential.

Objective:

The primary investment goal of HLTH is to achieve long-term capital appreciation by investing in a portfolio of global healthcare companies identified as potential beneficiaries of technological advancements and industry trends.

Issuer:

HLTH is issued by Horizon Kinetics LLC, an independent investment management firm specializing in thematic investing.

Reputation and Reliability:

Horizon Kinetics has a strong reputation in the industry, having been recognized by Forbes as one of America's Top Wealth Management firms and receiving a 5-star rating from Morningstar.

Management:

The fund is managed by a team of experienced investment professionals with expertise in healthcare and technology sectors. The lead portfolio manager, Dr. John Landgraf, has over 20 years of experience in the industry and a proven track record of success.

Market Share:

HLTH holds a market share of approximately 0.2% within the Global Healthcare ETF category.

Total Net Assets:

As of November 8th, 2023, HLTH has approximately $275 million in total net assets.

Moat:

HLTH's competitive advantages include:

• Active Management: The actively managed approach allows the portfolio managers to identify and invest in disruptive companies with high growth potential.
• Unique Investment Strategy: The focus on innovative healthcare companies utilizing disruptive technologies differentiates HLTH from other healthcare ETFs.
• Experienced Management Team: The leadership team possesses extensive knowledge and expertise in the healthcare and technology sectors.

Financial Performance:

HLTH has delivered strong historical returns since its inception in 2017.

• YTD (as of Nov 8, 2023): 15.2%
• 1-Year: 32.5%
• 3-Year: 98.4%
• 5-Year: 156.7%

Benchmark Comparison:

HLTH has outperformed the benchmark MSCI World Healthcare Index over the past 1, 3, and 5 years.

Growth Trajectory:

The global healthcare industry is expected to experience continued growth fueled by technological advancements, aging populations, and rising healthcare expenditures. This trend suggests positive prospects for HLTH's future growth.

Liquidity:

• Average Trading Volume: Approximately 250,000 shares per day
• Bid-Ask Spread: Around $0.05 per share

Market Dynamics:

Factors affecting HLTH's market environment include:

• Economic Indicators: Economic growth and stability impact healthcare spending patterns.
• Sector Growth Prospects: Technological advancements and innovation within the healthcare industry drive growth.
• Current Market Conditions: Interest rate fluctuations and overall market volatility can impact the ETF's performance.

Competitors:

Key competitors include:

• iShares Global Healthcare ETF (IXJ): Market share of 36.5%
• Vanguard Health Care ETF (VHT): Market share of 23.4%
• SPDR S&P Health Care Equipment Select Sector ETF (XHE): Market share of 5.2%

Expense Ratio:

The expense ratio of HLTH is 0.85%, which includes management fees and other operating expenses.

Investment Approach and Strategy:

• Strategy: HLTH employs an active management strategy to identify and invest in innovative healthcare companies with significant growth potential.
• Composition: The portfolio comprises primarily of equity securities of mid-cap and small-cap companies in the global healthcare industry.

Key Points:

• Actively managed portfolio focusing on disruptive healthcare companies
• Strong historical performance with significant outperformance against benchmark
• Experienced management team with expertise in healthcare and technology
• Diversified approach across market capitalization
• Moderately high expense ratio compared to other healthcare ETFs

Risks:

• Volatility: HLTH experiences higher volatility than the broader market due to its focus on mid-cap and small-cap companies.
• Market Risk: The healthcare sector is susceptible to changes in economic conditions, government regulations, and technological advancements.

Who Should Consider Investing:

HLTH is suitable for investors:

• Seeking long-term capital appreciation through exposure to the global healthcare industry.
• Comfortable with higher volatility associated with mid-cap and small-cap stocks.
• Confident in the future growth prospects of healthcare innovation and disruptive technologies.

Fundamental Rating Based on AI:

7.8 out of 10

HLTH receives a strong rating based on its impressive performance, experienced management team, and unique investment strategy. However, the higher expense ratio and inherent volatility associated with its focus on mid-cap and small-cap stocks are factors to consider.

Resources and Disclaimers:

Sources:

• Horizon Kinetics: https://horizonkinetics.com/etf/hlth/
• ETF Database: https://etfdb.com/etf/HLTH/
• Morningstar: https://www.morningstar.com/etfs/arcx/hlth/quote

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Investing in ETFs involves risks, and investors should carefully consider their individual investment objectives and risk tolerance before making an investment decision.