Friday, 1 October 2021 Reading time : 3 minutes

In the OECD countries, spending on health is growing much faster than the gross national product. In order to slow down this increase, the players in the healthcare sector must be better connected and the productivity of the provision of services in the healthcare sector must be increased. The tracker certificate combines 23 stocks se-lected by ZKB Asset Management, which benefit from investments in digital innovations in the healthcare sector.

In the healthcare sector, innovations from the field of in-formation and communication technologies, which

• help to organize the data exchange between the different actors more efficiently,
• support the creation of diagnoses through the au-tomated collection and evaluation of data and
• at the same time help to organize the processes in diagnosis and treatment more productively,

are subsumed under the term "eHealth".

Depending on the study and the country examined, the efficiency and savings potential in the healthcare system that could be realized through digitally supported and optimized processes amounts to 15 - 25% of the total expenditure of the healthcare system. While not everything that is possible is realistic, investments in eHealth systems should nevertheless lead to substantial productivity gains. These, in turn, should lead to savings in the costs of diagnoses and treatments, thus refinancing the investments previously made.

Our basket focuses on companies that develop, distribute or deploy eHealth systems. Thanks to their innovative products and services, these companies should be able to achieve comparatively strong growth rates in their sales or operating margins.

Overview of the selected stocks
Companies that develop new products and services, including software and e-commerce platforms for health insurers, hospitals, research companies and academic institutes, are the real eHealth innovators. The financial success of the innovators depends on the customer benefits, the unique selling propositions of their innovations and the resulting intensity of competition in the respective markets. We expect that the value creation of certain investments is likely to move, at least in part, to health insurers and e-commerce pharmacies, as these have the advantage of direct access to end users. This is more likely to be the case for software products and e-commerce platforms, which are less complex.