The ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) isn’t just one of the best actively managed exchange traded funds. Nor is it just one of the best healthcare ETFs. It’s one of the premier options for investors looking for a truly disruptive play on healthcare investing.
Disruptive technologies are changing the way new products and services are being brought to market, already seen in the development of artificial intelligence and robotics. As the number of companies that focus on highly advanced computer integration grows, so does the number of targeted ETF strategies that have been designed to capture the best growth opportunities.
One of the frontiers some ARKG components are forging into is early detection of cancer, which can save billions of dollars and, more importantly, lives.
“Cancer is easier to treat when diagnosed early. All solid tumors start as benign lesions called neoplasia that advance from local, to regional, and finally to distant or metastatic cancer,” notes ARK analyst Simon Barnett. “As cancer progresses, the number of treatment options shrinks. Surgeons lose the ability to remove tumors completely and chemotherapies become ineffective. Unfortunately for many patients, symptoms don’t present until their cancers have spread.”
ARKG: A Credible Early Detection Bet
When it comes to early detection as an investable concept, ARKG’s forward-looking methodology is an advantage many rival funds don’t have.
“Securities within ARKG are substantially focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business. One such way this is accomplished is by offering new products or services that rely on genomic sequencing, analysis, synthesis or instrumentation,” according to the issuer.
Today, many legacy cancer detection systems and tools are decades old. ARKG components are changing that.
“In the face of our analysis that multi-cancer liquid biopsy screening could lower cancer-specific deaths by 66,000 per year, we also understand the obstacles to widespread adoption in the near term. While some companies in the space may pursue near-term commercialization, we do not expect FDA approval nor reimbursement to occur until at least 2023,” notes Barnett.
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.