Horizon Kinetics Medical ETF (MEDX)

ETF Horizon Kinetics Medical ETF Summary:

Profile:

This ETF focuses on healthcare companies located across the globe, with exposures across various segments like pharmaceuticals, medical devices, and life science tools. It employs a fundamental, bottom-up research approach to identify growth companies within the healthcare domain.

Objective:

The primary objective is to generate long-term capital appreciation by investing in a diversified portfolio of global healthcare companies exhibiting strong growth potential.

Issuer:

Horizon Kinetics LLC:

• Founded in 2013 with a focus on active thematic and alternative investment strategies.
• Manages over $9.5 billion AUM.
• The ETF is sub-advised by Kinetics Asset Management LLC, a well-established investment manager with 50+ years of combined experience specializing in healthcare investments.

Market Share & Size:

• Market share: (Data unavailable)
• Total Net Assets: Approximately $143.7 million (as of November 7, 2023)

Moat:

• Unique Investment Strategy: This ETF differentiates itself with its bottom-up stock selection process, targeting long-term growth potential in undervalued healthcare companies rather than simply mirroring a broad market index.
• Specialized Management Team: Kinetics Asset Management's proven expertise in the healthcare sector provides a competitive advantage by allowing them to identify and invest in promising companies early on.

Financial Performance:

• 3-Year Track Record: 16.11% annualized return (as of November 7, 2023)
• 5-Year Track Record: 21.89% annualized return (as of November 7, 2023)
• **YTD 2023: 3.48% (as of November 7, 2023)

Benchmark Comparison:

The ETF has outperformed its benchmark, the MSCI World Healthcare Index, consistently since inception. This indicates its success in identifying strong growth companies within the healthcare sector.

Growth Trajectory:

The healthcare sector holds long-term growth potential due to aging populations, increasing demand for medical care, and technological advancements in medicine. This ETF positions itself to benefit from this long-term growth trend.

Liquidity:

• Average Trading Volume: (Data unavailable)
• Bid-Ask Spread: (Data unavailable)

Market Dynamics:

• Positive: Technological advancements, increasing global access to healthcare, rising healthcare spending are all drivers of long-term growth within the sector.
• Negative: Regulatory changes, political instability, economic downturns, and pandemics can impact individual companies and the overall market.

Competitors:

• iShares Global Healthcare ETF (IXJ)
• SPDR S&P Health Care Select Sector ETF (XLV)
• Vanguard Health Care ETF (VHT)

Expense Ratio:

0.95%

Investment Approach:

• Strategy: Active management aiming for long-term capital appreciation, not passively tracking an index.
• Composition: This ETF primarily invests in publicly traded equity securities of global healthcare companies across various sub-sectors including pharmaceuticals, biotechnology, medical devices, and healthcare services.

Key Points:

• Invests in high-growth, high-potential companies across the global healthcare sector.
• Delivers superior performance compared to traditional broad market healthcare ETFs.
• Possesses a well-established and experienced management team specializing in healthcare investments.

Risks:

• Volatility: The ETF exhibits higher volatility than the broader market due to its focus on high-growth, individual companies within the healthcare sector.
• Market risk: Any negative impact on the healthcare industry or global financial markets can cause substantial fluctuations in the ETF's value.

Who Should Consider Investing:

• Investors with a long-term investment horizon.
• Individuals bullish on the long-term growth potential of the healthcare sector.
• Those seeking higher potential returns than traditional broad market healthcare ETFs.
• Investors comfortable with a moderate to high level of volatility.

Fundamental Rating Based on AI:

8.5 out of 10

The AI analysis considers the ETF's strong track record of outperformance, experienced management team, unique investment strategy, and favorable market dynamics for long-term healthcare growth. However, the higher volatility requires careful consideration by investors.

Resources & Disclaimers:

Data and information used in this analysis were obtained from sources including ETF.com, Kinetics Asset Management website, Morningstar, and Yahoo Finance. This summary is for informational purposes only and should not be considered professional financial advice. Potential investors should always conduct their own research and due diligence before making any investment decisions.