The Tema ETF Trust Tema Heart & Health ETF (HRTS) seeks to provide exposure to companies involved in cardiovascular health, medical devices, pharmaceuticals, and health technology innovations. This healthcare sector ETF focuses specifically on the heart health and cardiovascular treatment ecosystem, targeting companies developing solutions for cardiac care, prevention, and related medical technologies.
How It Works
HRTS employs an actively managed approach, selecting companies across the cardiovascular health value chain including medical device manufacturers, pharmaceutical companies developing cardiac treatments, digital health platforms, and biotechnology firms focused on heart-related therapies. The fund's portfolio managers conduct fundamental research to identify companies positioned to benefit from aging demographics and increasing cardiovascular disease prevalence. Holdings are weighted based on conviction levels and market opportunity assessments, with quarterly rebalancing to maintain strategic allocations.
Key Features
- Specialized focus on cardiovascular health sector provides targeted exposure to $50+ billion global cardiac care market
- Active management allows for nimble positioning across emerging heart health technologies and established medical device leaders
- Recently launched in November 2023, offering early access to a previously unavailable thematic investment approach
Risks
- This ETF can lose value if cardiovascular health companies face regulatory setbacks, with medical device approvals potentially delayed for years
- Concentrated healthcare sector exposure means the fund will decline significantly during broad healthcare selloffs or drug pricing concerns
- As a new ETF with minimal assets, liquidity could be limited and tracking error higher until the fund gains scale
Who Should Own This
Best suited as a satellite holding (5-15% of portfolio) for investors with 3+ year time horizons seeking thematic exposure to cardiovascular health trends. High risk tolerance required due to healthcare sector volatility and concentrated exposure. Appropriate for investors believing in aging demographics driving cardiac care demand and comfortable with active management approach.