Tema ETFs, a leader in institutional-quality and actively managed exchange-traded funds, announced the launch of the Tema Healthcare AI ETF (HLTH).
HLTH was developed to invest in one of AI’s largest and most consequential applications: improving healthcare. U.S. healthcare spending is forecast to approach $9 trillion by 2034, representing more than 20% of GDP.1 Yet healthcare accounted for just 8.9% of the S&P 500 as of June 30,2 leaving AI’s potential to elevate the sector underappreciated by the market.
That potential is rapidly moving from research to implementation. DeepMind’s AlphaFold, an AI model that predicts protein structures, won the 2024 Nobel Prize in Chemistry and is already used by more than 2 million researchers,3 demonstrating how quickly a scientific breakthrough can become a widely adopted research tool. Anthropic has said AI could compress a century of biological progress into a decade, while healthcare and biopharma together represent the third-largest category of global private AI investment.
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As the AI investment cycle broadens beyond the semiconductor-led infrastructure buildout, healthcare stands as one of the largest markets for adoption. HLTH offers a pure-play way to invest in that shift, targeting companies at the leading edge of drug discovery, diagnostics, clinical applications such as robotics, and technologies that improve patient care.
Healthcare innovation is complex, highly specialized, and marked by significant scientific and clinical risk, which Tema believes warrants an expert-led approach. HLTH is managed by Dr. David Song, MD, PhD, CFA, a Yale and Penn-trained physician with more than two decades of healthcare investing experience.
“AI has the potential to improve nearly every aspect of healthcare, from research and diagnosis to treatment and care delivery,” said Dr. David Song, Investment Partner and Portfolio Manager of HLTH. “In drug development, it can help researchers identify better candidates faster and improve the odds of clinical success. In clinical settings, it can enable earlier detection, greater precision, and more efficient care. We believe navigating these opportunities requires expertise and an active approach to identifying advances that can deliver better outcomes for patients, providers, and investors alike.”
SOURCE: Businesswire