EKG Profile
The First Trust Nasdaq Lux Digital Health Solutions ETF aims to provide investors with exposure to companies at the forefront of the intersection between healthcare and technology. Under normal market conditions, the fund invests at least 80% of its net assets, including any borrowings for investment purposes, in common stocks and depositary receipts that are part of the index. This strategy focuses on securities that represent innovative advancements in digital health and technological solutions within the healthcare sector.
The underlying index is meticulously curated by Lux Capital and includes a selection of companies engaged in various aspects of digital health and healthcare technology. These firms are chosen based on their involvement in developing and delivering products and services that merge healthcare with technological advancements. This could encompass sectors such as telemedicine, wearable health devices, and digital health platforms, all of which are pivotal in transforming how healthcare services are delivered and managed.
The index’s composition reflects a broad range of sub-sectors within the digital health space, including companies specializing in health IT, electronic medical records, and data analytics for health outcomes. By targeting these areas, the fund seeks to capitalize on the rapid growth and innovation occurring at the nexus of healthcare and technology. As a result, investors gain access to a dynamic portfolio of companies poised to benefit from ongoing technological advancements and increasing demand for digital health solutions.
Given its focus on a specialized segment of the market, the fund is non-diversified, meaning it may concentrate its investments in a narrower set of sectors compared to more broadly diversified funds. Investors should be aware of this concentration risk and consider how the fund aligns with their investment goals and risk tolerance. This ETF is designed for those looking to invest in the evolving digital health landscape, which is increasingly pivotal in the modernization and efficiency of healthcare systems worldwide.
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