Roundhill HALO ETFLOHA

The Roundhill HALO ETF (LOHA) is betting on the future of health and longevity, but its top holdings suggest it’s more of a ‘precision medicine with a side of robotic surgery’ play. The fund’s largest position is Intuitive Surgical, which makes da Vinci surgical systems-a far cry from the fountain of youth. Other top holdings include Illumina and CRISPR Therapeutics, both of which are involved in cutting-edge genetic research but also face regulatory and legal challenges.

LOHA tracks the HALO Index, which is designed to measure the performance of companies involved in the ‘longevity economy’. However, the fund’s prospectus notes that it may not perfectly replicate the index’s performance due to ‘sampling methodologies’. This means the fund’s managers are picking and choosing which stocks to include, which could lead to tracking errors. The fund also comes with a 0.75% expense ratio, which is higher than many other ETFs in the healthcare space.

At last count, LOHA had $100 million in assets under management and a relatively concentrated portfolio, with the top five holdings making up nearly 30% of the fund. This concentration adds to the fund’s risk profile, as a downturn in any of these companies could have a significant impact on the fund’s overall performance. The fund’s liquidity is also a concern, as it trades on lower volume compared to some of its peers.

LOHA’s chart on TradingView shows a steady performance over the past year, but the fund’s long-term prospects are less clear. The longevity theme is still in its early stages, and many of the companies in the fund are pre-revenue or operating at a loss. The fund’s success will depend on whether these companies can deliver on their promises of breakthroughs in health and longevity.