- Revenue purity and growth important for healthcare ETFs
- How to value pre-revenue companies at the vanguard
With over 7.7bn people on the planet, the idea of a population crisis won’t shock anybody, but the underlying demographic problem is equally stark. Many people will see falling birth rates in large parts of the world (not just in the west and democratic Asia, but also in Russia and China) as being positive. Still, that implies a series of crunch points where there aren’t enough younger members in many societies to work, pay taxes and take care of the increasing proportion of elderly.
Technology therefore must provide many of the productivity and development solutions the world needs, especially in healthcare. Automation and robotics, supply chain management and smart devices to manage patient needs could ease the pressure on human labour. Health tech, therefore, is an area of the economy with important structural drivers, but investors must still do their homework.