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The information and data are as of the June 24, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

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Precision Medicine

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]

One universal and challenging reality of healthcare is that we all respond differently to different treatments. We’ve all had those frustrating moments when we learn that the medicine we recently tried that made no real improvement on our ailment somehow worked brilliantly for a friend or family member.

The reason for this variability stems from the fact that everyone has unique genetics, lifestyles, and living environments. Our genetic makeup, lifestyle choices, and the physical environment around us all impact how our bodies respond to sickness and medicine.

For instance, a small percentage of the population has an enzyme deficiency due to genetics. People with this deficiency are not able to process drugs called thiopurines, which are used to treat autoimmune disorders, certain types of cancer, and organ transplants.

The traditional approach to medicine involves doctors giving sick patients treatment that works well for most people, and adjusting course if the treatment does not work. This approach may work well enough when the illness is not serious, but it can be downright dangerous if the patient has an aggressive disease and there is not enough time for trial and error treatment.

In response to the limitations of traditional medicine, there is growing interest in a new approach called precision medicine. Unlike traditional medicine, precision medicine approaches treatment from the perspective that all patients are highly unique, and that in order to provide the most effective treatment, doctors need to understand exactly what makes a patient unique.

Precision medicine is a data-driven approach to healthcare, and recent advances in computer science and technology are harnessing data to drive innovation across the healthcare sector. There are significant challenges that need to be addressed before precision medicine can have a global, transformative impact, but leaders throughout healthcare and government are increasingly recognizing precision medicine’s enormous potential to deliver better care faster.

For those interested in the investment potential of this growing industry, there are a few important points to understand.

What Is Precision Medicine?

According to the National Institutes of Health (NIH), precision medicine is “an emerging approach for disease treatment and prevention that takes into account individual variability in genes, environment, and lifestyle for each person.”

The “precision” in precision medicine allows doctors and researchers to more accurately pinpoint which treatments will be most effective for certain people or groups of people.

Three fields that are rapidly driving innovation in precision medicine are genetic testing, pharmacogenomic testing, and medical imaging.

According to the NIH, genetic testing is “a type of medical test that identifies changes in chromosomes, genes, or proteins. The results of a genetic test can confirm or rule out a suspected genetic condition or help determine a person’s chance of developing or passing on a genetic disorder.” Genetic testing is currently used to identify people who are at particular risk for certain types of cancer (such as with the BRCA gene test for breast cancer), and the hope is that in the future, genetic testing will expand into the realm of primary care as a noninvasive screening test for preventive medicine.

Pharmacogenomic testing is a type of genetic test used to figure out how a patient will

respond to certain medications. Our genetic makeup contributes to how we respond to medicine, so pharmacogenomic tests look for clues in our genes to figure out which medications, or what doses of those medications, are likely to work best.

As mentioned earlier, some people have an enzyme deficiency that makes thiopurines ineffective. A pharmacogenomic test for this enzyme deficiency lets the doctor know whether thiopurines are a good course of treatment before treatment begins, rather than adjusting course after complications arise.

Last but not least, medical imaging encompasses the various technologies that allow us to view the human body in order to diagnose, monitor, or treat medical conditions (MRIs, CT scans, etc.). Innovative technological solutions are changing how images are gathered and interpreted.

By harnessing the power of artificial intelligence and deep learning, Intel recently developed technology that was able to identify thyroid nodules in patients with 10% higher accuracy than the radiologists. Innovations in genetic testing, pharmacogenomic testing, and medical imaging are accelerating the expansion of precision medicine in the healthcare ecosystem.

Why Invest in Precision Medicine?

The investment potential in the precision medicine industry is likely substantial, and there are several clear reasons for this.

First, leaders in government are beginning to recognize the enormous potential of precision medicine and are committing substantial resources to support innovation. For instance, President Obama launched the Precision Medicine Initiative (PMI) in 2015 with $215 million in funding to drive research and expand precision medicine across the U.S. healthcare ecosystem. A cornerstone of the PMI is the groundbreaking All of Us Research Program, which plans to enroll and follow a diverse group of at least 1 million people in the U.S. in order to accelerate medical research and improve health.

Government funding aside, the proliferation of direct-to-consumer genetic testing is another driver of precision medicine’s long-term strength. Companies such as 23andMe and Ancestry.com offer genetic testing that provides customers with genealogy and health insights.

Millions of people have taken these at-home genetic tests, and testing companies now sit on mountains of valuable data. That data, when properly (and legally) harnessed, is enormously valuable in developing new drugs.

While precision medicine is clearly going to continue changing the healthcare landscape in the coming years, there are a few challenges that need to be addressed before it becomes a game changer for everyone.

The first challenge is data. Health data is not like other data – it is subject to extensive and strict government regulations (HIPAA in the U.S., for instance). How will companies navigate these complicated data issues as they work to integrate precision medicine solutions?

The next challenge is access. If you are poor or uninsured, precision medicine, as it currently stands, is likely too expensive for you to use. Will prices come down as innovation accelerates, or will governments need to step in to improve access for everyone?

These are questions that thought leaders in healthcare, private industry, and government are thinking about, and they are worth considering if you are interested in investing in precision medicine.

How to Invest in Precision Medicine

Of course, investing in a field as new and innovative as precision medicine comes with its share of risk. As an emerging segment of healthcare, precision medicine is still growing and the companies in this sector are still working out where that can make the biggest impact. With this in mind, investing in precision medicine via an ETF or mutual fund is a good way to access this emerging field without taking on undue risk. A search on Magnifi suggests that there are a number of ways to do this.

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The information and data are as of the June 16, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

LGBTQ

Socially conscious investing is on the rise. According to a report by the US SIF Foundation, 1 in 4 assets of the $46.6 trillion in investments professionally managed is invested in socially responsible ways.

Why? More than investing for strictly financial purposes, investors are increasingly considering the social impact that their investments can have. It’s more and more common for investors to want their portfolio to be holistic, putting their money to work to support causes they personally care about.

Also known as socially responsible investing (SRI), this trend is described as investing in companies that have firm ethical practices. Investors can participate in SRI on a range of issues that are important to them, from the environment to social concerns. LGBTQ investments, an emerging trend in the space, have the power to support anti-discrimination measures as they relate to gender identity in the workplace.

For the LGBTQ community, the legalization of gay marriage in 2015 changed finances in many households. From taxes, to retirement planning and pensions, marriage equality made partners into formally recognized households and more aligned financial partners.

And, this community has money to invest. According to LGBT Capital, LGBTQ household wealth is estimated at $18 trillion globally, approximately $6 trillion of which is in the United States.

For these reasons and more, investing in companies that are explicitly supportive of the equality of the LGBTQ community is a growing trend that’s here to stay.

What Is LGBTQ Investing?

LGBTQ investing is using investments to advance social equity, specifically by supporting publicly traded companies that support anti-discrimination measures related to sexual orientation, gender identity, and gender expression.

Offerings that have both an ethical and financial concern have a long history and are still expanding.

Environmental, social and governance (ESG) factors address non-traditional issues as a key part of financial analysis. First coined in 2005 by the study “Who Cares Wins,” ESG factors include how a corporation handles environmental stewardship, treats its employees, manages supply chains, and more.

ESG, while newer than Socially Responsible Investment (SRI), builds upon it and states that corporations that practice ESG are better poised to compete successfully. Around the same time of the “Who Cares Wins” report, the UNEP published the “Freshfield Report” which demonstrated more specifically how ESG factors are relevant to financial valuation.

Soon after these reports in 2006, the Principles for Responsible Investment (PRI), a voluntary set of investment principals, were launched by the New York Stock Exchange followed by the Sustainable Stock Exchange Initiative (SSEI) in 2007.

These initiatives speak to the core interest of investors in investing in companies that have values that align with their own.

In the meantime, in 2002, the Corporate Equality Index (CEI) was introduced by the Human Rights Campaign Foundation. Its purpose is to rate the LGBTQ-inclusivity of businesses from 1 to 100. This is a helpful tool both for companies wanting to know how they stack up and investors with a commitment to supporting the advancement of LGBTQ inclusivity.

It’s been shown that companies with more pro-employee policies tend to have better performance, making LGBTQ equality a relevant ESG factor. In this space, specific workplace benefits identified by the CEI include domestic partner benefits, transgender-inclusive benefits, employee resource groups, and public commitment to the LGBTQ community.

According to the CEI 2020 report, 91 percent of Fortune 500 companies (including those who participate in the survey and those that do not) include gender identity protections in their nondiscrimination policies. This is up from just 3 percent in 2002.

And while environmental stewardship might be a more traditional ESG factor, LGBTQ equality is an example of an increasingly relevant and popular ESG factor.

How to Invest in LGBTQ?

In 2018, UBS launched a fund that matches investors with companies that “respect, protect and encourage their lesbian, gay, bisexual and transgender employees.”

Investment portfolios are increasingly versatile tools depending on investor criteria. LGBTQ investments can be incorporated into portfolios in a variety of ways, from meeting specific criteria to more broadly supporting the community.

According to the Corporate Equality Index (CEI) the top ten companies according to the 2020 index are (1) Walmart Inc., (2) Exxon Mobil Corp. (3) Berkshire Hathaway, (4) Apple Inc., (5) UnitedHealth Group Inc., (6) McKesson Corp., (7) CVS Health Corp., (8) Amazon.com Inc., (9) AT&T Inc., and (10) General Motors Co.

The corporate world is becoming more inclusive. Now more than ever, investing in LGBTQ is a matter of choosing to be aware of which companies are explicitly inclusive, and putting your money there.

Of course, investing in companies based on social issues isn’t easy, as different companies take different approaches to these concerns and often their businesses are not directly related to them. However, ETFs and mutual funds focused on social and equality issues are a good way to access this growing sector without having to invest directly in specific companies. A search on Magnifi suggests there are a few different ways to do this.

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The information and data are as of the June 15, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

Medical Devices

[What else is happening in healthcare? Here’s Magnifi’s take.]

When we think “medical device,” we might automatically think of the beeping equipment in a hospital room. But, in today’s world, medical devices are much more— perhaps even closer to science fiction than traditional science.

The medical device market is anticipated to reach $432.6 billion by 2025, according to a recent report published by Lucintel.

In part, this growth is driven by the increasing sophistication of technology. Medical devices are becoming smaller and smarter than ever, performing increasingly complex and constantly improving functions.

Moreover, escalating healthcare costs, a rise in chronic diseases, and a growing aging population are compelling health care providers to seek out new, more efficient care models. From 3D printing human tissues to monitoring patients according to their specific clinical needs after they leave the hospital, innovative medical devices are meeting that need.

New medical devices are offering a myriad of useful answers to complex health challenges, changing the reality of care in new and exciting ways.

What Are Medical Devices?

According to the World Health Organization, ‘medical device’ means any instrument, apparatus, implement, machine, appliance, implant, reagent for in vitro use, software, material or other similar or related article, intended by the manufacturer to be used, alone or in combination, for human beings, for one or more of the specific medical purpose(s) of:

diagnosis, prevention, monitoring, treatment or alleviation of disease,
diagnosis, monitoring, treatment, alleviation of or compensation for an injury,
investigation, replacement, modification, or support of the anatomy or of a physiological process,
supporting or sustaining life,
control of conception,
disinfection of medical devices
providing information by means of in vitro examination of specimens derived from the human body;

and does not achieve its primary intended action by pharmacological, immunological or metabolic means, in or on the human body, but which may be assisted in its intended function by such means.

So, health monitors, check. Brain sensors, check. 3D printed prosthetics (and ears!), check again.

Why Invest in Medical Devices?

The landscape of medical devices is growing rapidly, with technology making the impossible possible.

Wearables

The rise in wearables isn’t limited to FitBits. And when it comes to medical devices, wearables do much more than measure your steps. For one, wearables can offer real-time patient data to health care providers. And, when they connect with Artificial Intelligence-based programs, they not only collect information, but also analyze it against big data.

Up-to-minute information about vitals limits the need for in-person appointments and can lead to better patient outcomes. For example, Current Health’s Remote Patient Monitoring Platform is AI powered and customizable according to a patient’s risk level.

Some emerging wearables can also perform health interventions. In early 2019, the U.S. Food and Drug Administration (FDA),approved the first wearable, portable peritoneal dialysis. Developed by Singapore-based AWAK Technologies, the device has the potential to change the lives of dialysis patients around the world.

Perhaps even more exciting, researchers at the University of Michigan have developed a wrist-worn prototype that screens the wearer’s blood over the course of a few hours, analyzing it for circulating tumor cells (CTCs).

Wearables can be used for everything from pre-surgical planning to gene sequencing and medical imaging, making their health and investment opportunities plentiful.

Brain Sensors

These days, brain sensors come in many shapes and sizes. Some are placed in the brain itself, measuring temperature and pressure before dissolving. This information can be crucial for patients with traumatic brain injuries, for example. Their dissolvable nature not only negates the need for surgery to remove them, but also limits the risk of infection and complications associated with long-term implants.

Alternatively, the company Advanced Brain Monitoring offers products designed to track function as it relates to chronic diseases and early stage neurodegeneration.

Still others are more consumer oriented, like the company Muse, which sells headsets that act as a brain fitness tool, measuring and tracking brain activity.

Artificial Organs

Certainly many things — like the heart — can’t be replicated. Right? Actually, that’s not entirely true anymore.

iSynCardia Systems recently received FDA approval for its most recent iteration of a total artificial heart, the 50cc temporary Total Artificial Heart System (50cc TAH-t).The company’s artificial heart, first approved in 2004, is meant to be a bridge until a biological donor becomes available. Artificial organs, whether printed or made otherwise, offer a lot of promise, providing millions waiting on donor organs an alternative.

3D Printing

According to the FDA, “3D printing is a process that creates a three-dimensional object by building successive layers of raw material.”

Not only does 3D printing allow for the creation of more patient-specific devices, it allows for more specific variation in medical tools. Rather than buying large quantities of a tool, providers can print them on demand. Similarly, customized prosthetics and orthopedic implants are more possible than ever, improving the likelihood of patient success.

Bioprinting

Now, for the real science fiction stuff.

Bioprinting uses carefully designed bio inks made of biomaterials and cells to 3D print living obstacles, such as tissue or organ. Pioneered a decade ago, bioprinting in its early days was developed to improve wound reconstruction related to burns, one of the most common types of traumas worldwide. Since then, scientists have gone as far as to develop a prototype of a handheld bioprinter designed specifically to help skin regenerate in areas affected by large wounds.

Beyond skin, scientists have succeeded in bioprinting an artificial pancreas, a synthetic ear, a meniscus made in space, and even bone tissue. Researchers are even working on bio-printed ovaries for women suffering from infertility.

How to Invest in Medical Devices

As an emerging industry, particularly one in the feast or famine sector of biotech, investing in medical devices directly can be risky. Although medical devices on the whole have been around for decades, the innovative new solutions at the forefront of the industry remain largely untested. This can make investing in individual medical device companies a risky proposition.

However, a search on Magnifi indicates that there are a number of ETFs and mutual funds available to give investors broad exposure to this industry without concentrating their bets on any one company.

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The information and data are as of the June 11, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

Healthcare

Make no mistake, the COVID-19 pandemic has been a wake-up call for millions of people around the world. Suddenly, maintaining our health is the most important thing on our minds, overtaking all of the usual daily tasks like work, school and entertainment.

Economies have shut down, governments have scrambled to adapt and we’re still not yet sure what the world will look like on the other side of this.

But one area that’s seeing direct impacts is the healthcare industry. Not only are millions turning to their healthcare providers for help addressing COVID-19, but they’re also doing so in new ways as a result of the pandemic. Stay-at-home orders and concerns over exposure at hospitals have led to an explosion in the use of telehealth and digital health services.

This isn’t all new, of course. It’s been a long time since the stereotype of the lone country doctor doing house calls has been even close to true, and the industry has been evolving and growing ever since its earliest stages prior to the Civil War. In those days, medical care was a luxury with hospitals located in a few major cities to serve patients but little else available. The first hospital in the U.S., the Royal Hospital in New Orleans, opened in 1722 as a military facility but was later switched over for civilian use. By that point it was too expensive for the majority of the residents in the area to visit, so a second, charity-based hospital was built nearby, starting the tradition of hospitals serving all as a type of public service.

Medical innovation accelerated dramatically in the 20^th century, with the advent of new technologies like X-ray and Magnetic Resonance Imaging improving doctor’s diagnostic capabilities, the expansion of vaccines helping to protect public health from infectious diseases, to new surgical anesthetics, antibiotics, heart surgeries, radiologic imaging and more.

As ABC News explained in 2007: “Whether it’s the technology that allows us to peer deep into the body or medicines that extend the lives of those with chronic diseases, it’s easy to see how advances in health and medicine have touched the lives of nearly every person on the planet. Yet considering the ubiquitous nature of these developments, it is easy to see how many people take for granted the technologies and practices that, at one point or another, almost certainly saved their own lives or the lives of people they’ve loved.”

The history of healthcare is a history of innovation.

That’s one of the reasons that it has become such a popular segment for investors looking to generate gains while also supporting work that’s protecting the health of millions of people. But, for those interested in the investment potential of this booming market, there are a few important points to understand.

What Is Included in ‘Healthcare’?

According to Webster’s dictionary, “healthcare” includes any “efforts made to maintain or restore physical, mental, or emotional well-being especially by trained and licensed professionals.” This includes everything related to maintaining or improving a person’s health, including the prevention, diagnosis, treatment, recovery or cure of diseases, injuries and any other physical problems that they might be experiencing.

And the list of other professionals involved in delivering healthcare is equally long, including doctors, nurses, surgeons, pharmacists, dentists, optometrists, psychologists, therapists, athletic trainers and more. Anyone providing care to people – including on the scale of public health – is involved in healthcare.

Here in the U.S., the term “healthcare” also typically applies to the entire healthcare delivery system, ranging from individual doctor’s offices all the way up to hospitals and pharmaceutical companies. A health system is a network of related facilities – usually three to 10 hospitals – that work together to deliver health services to patients in their geographic area. The National Bureau of Economic Research defines health systems based on three types of arrangements: (1) organizations with common ownership, (2) those that are contractually integrated, and (3) those that are part of informal care systems, such as common referral arrangements. “Systems include organizations combined horizontally (e.g., a hospital system) or vertically (e.g., a multihospital system also owning physician practices and post-acute care facilities).”

These systems are typically major employers in their communities and are effectively one-stop-shops for all of their patient’s healthcare needs.

Of course, delivery is just part of the healthcare equation. It also has to be paid for, and that’s where the health insurance side of things comes into the picture. Health insurance today is a tangled web of private plans, employer-provided plans, government-backed programs like Medicare and Medicaid and more. Add to this the Affordable Care Act, introduced in 2010, intended to overcome some of the limitations of the private, for-profit health insurance industry and expand affordable coverage to all Americans.

Why Invest in Healthcare?

As an industry, healthcare is massive.

Worldwide, the industry was worth $8.45 trillion as of 2018 and accounts for about 10% of most GDPs. This is on track to exceed $10 trillion by 2022.

In the U.S., it’s even bigger. As of 2019, healthcare accounted for nearly 18% of U.S. GDP and is the country’s largest employment sector, employing 1 out of every 8 Americans. We also spend the most on our health individually, at more than $10,000 annually per capita.

It’s also an extremely lucrative segment of the economy. Among the 784,000-plus companies in U.S. healthcare, more than $1 trillion in annual revenue comes from patient services, with $74 billion coming from rehab services, $50 billion from dental services and more than $44 billion from government grants and contributions. Healthcare deals with a lot of big numbers.

But there are hopes that new technologies can help tame this system and unlock new efficiencies. According to some estimates, the internet of things (IoT) can lower the costs of operational and clinical inefficiencies by $100 billion per year, and 64% of physicians believe it can help reduce the burden on nurses and doctors.

Beyond IoT, healthcare is finding new applications for Artificial Intelligence in managing patient care, blockchain in handling patient health records, chatbots for customer service and virtual reality for physician training. That’s to say nothing of the potential for marketing automation, supply chain logistics and other proven technologies that are finally finding applications in the healthcare space.

How to Invest in Healthcare

Naturally, healthcare is a large and sprawling industry. For investors, it can be challenging to choose where to invest in a segment that includes everything from drug development, to medical devices, to home health services and much more.

Investing in a mutual fund or ETF that offers exposure to the entire healthcare world is a good way to overcome this limitation, and a search on Magnifi suggests that there are a number of such funds for investors to choose from.

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The information and data are as of the June 3, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

Vegan

From coconut coffee creamers and dairy-free yogurt to veggie burgers, the market for plant-based, natural foods and beverages are outpacing total food and beverage sales overall.

According to SPINS’ 2019 State of the Natural Industry, the market for natural food and beverage products is growing at 5.0% compared to that of total food and beverages growing at 1.7% year-over-year.

While the growth is astounding, it’s not necessarily surprising.

If you’ve been to the grocery store recently, you know that plant-based products are no longer limited to one aisle and aren’t marketed to just one specific type of consumer. Plant-based products are everywhere and stores are asking all shoppers to try them.

In other words, you don’t have to be a strict vegan to buy the latest brand of oat milk or plant butter.

And, more and more consumers are trying the plant-based versions of more traditional products, knowingly or unknowingly adopting a flexible vegetarian status known “flexitarian.”

The term flexitarian was coined in 2009 by registered dietitian Dawn Jackson Blatner who promoted eating more plants and less meat overall, or rather, being vegetarian most of the time. The diet is geared to promote overall health while not totally depriving followers of animal-based products.

Because of the lax guidelines that allow for mostly eating more veggies that the diet promotes, consumers are increasingly adopting it in one form or another—and eating more vegan products than ever.

Consider the success story of Beyond Meat, the plant-based burger company whose stocks skyrocketed after going public in May 2019, up 213% by November. According to UBS investment, Beyond Meat’s sales could reach $1.8 billion by 2025.

Who is buying Beyond Meat’s plant-based burgers? It’s not just vegans, but meat eaters, too.

As the number of vegans (including those with part-time buy-in) is on the rise, so is the unprecedented demand for plant-based products in grocery stores, restaurants, and beyond.

What Is Veganism?

Vegetarian diets typically eliminate meat and fish but allow for the consumption of eggs and dairy. Veganism is much more restrictive, eliminating all items of animal origin, including any food made with animal flesh, dairy products, eggs, or honey. The authentic Vegan lifestyle goes further, extending beyond food consumption to everything from textiles to clothing and cosmetics.

Generally, veganism offers three primary features: (1) additional curtailment of animal mistreatment and slaughter, (2) reduction of certain health risks, and (3) decrease of environmental footprint.

That’s right, it’s good for the environment.

Beyond being healthy for our bodies, veganism is promoted as a tool to combat climate change. Raising meat requires a massive use of grain and water. After slaughter, farmed animals are processed, transported, and stored, requiring the consumption of even more energy. Plant-based options tend to be more environmentally friendly.

The number of people choosing to live a vegan lifestyle worldwide is on the rise. In the United States, the demographic has grown by 600 percent between 2014 and 2018, from 4 million to 20 million people. The vegan population in the UK similarly quadrupled between 2014 and 2018.

This growth of veganism in conjunction with non- or sometimes-vegan consumers who buy plant-based foods for health and environmental reasons means a fast-growing market and more investment opportunities than ever.

Why Invest in Veganism?

Vegan products are a $7.1 billion market, growing at a rate of 10.1%. The plant-based meat market alone is anticipated to be valued at $27.9 billion by 2025 globally.

The market for other plant-based dairy alternatives, like cheese and milk, are also growing at unprecedented rates. Milk alternatives include soy milk, almond milk, rice milk, oat milk, coconut milk, and flaxseed milk. According to a recent study, the global dairy alternatives market is expected to grow, reaching $26.86 billion by 2023.

Alternatives to traditional butter exist as well. The US plant-based butter industry is valued at $198 million and growing. Between 2017 and 2019, sales of plant-based butter increased 15%, growing faster than the sales of traditional butter.

And these trends are going mainstream. In addition to niche plant-based butter brands like Milkadamia and Miyoko, Country Crock debuted its “Plant Butter” made with olive oil, avocado oil, and almond oil in September 2019. Non-dairy yogurts made with almonds, cashews, or coconut are also on the rise.

This phenomenon isn’t just on grocery store shelves, but in restaurants, too. White Castle offers the Impossible Sliders, Burger King offers the Impossible Whopper, and Carl’s Jr.’s offers the charbroiled Beyond Famous Star.

And, Wall Street is taking notice the sales of plant-based products. Beyond Investing introduced the US Vegan Climate ETF, listed on the New York Stock Exchange under the ticker VEGN, in fall 2019. The ETF excludes oil-related stocks as well as meat-centric companies.

Vegans are passionate about the environment and their health. And, no matter what degree of vegan one is, they are willing to pay the cash for the burger that’s just as good or maybe even better than the meat alternative.

In other words, plant-based products are here to stay, and varieties and consumer buy-in are sure to grow.

How to Invest in Veganism

But getting involved in a market segment as large and diverse as veganism — which impacts everything from food & beverage, to personal care, clothing and more — isn’t as straightforward as it sounds. But, by investing in mutual funds and ETFs that offer exposure to veganism as a whole, investors can spread their impact out to all of the companies that are working in this sector. A search on Magnifi suggests there are a number of ways for investors to get involved in veganism this way.

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This blog is sponsored by Magnifi. The information and data are as of the June 2, 2020 (publish date) unless otherwise noted and subject to change.

Sports

[Is streaming the future of sports?]

While watching your favorite team from your couch or in the stands (probably sporting your favorite team hat or player jersey) you may have let yourself daydream a time or two…what would it be like to own a team?

But, for most sports fans, that’s only a dream. The Los Angeles Clippers in 2014 were sold for $2 billion. Most professional sporting organizations have similar sky-high values.

This huge cost doesn’t mean, however, that less wealthy investors are precluded from investments in the big sports. The elite nature of teams is, in fact, not a barrier to entry at all. Rather, the loyal fan base these teams attract makes for a broad market of investment portfolio possibilities.

More than 16.5 million viewers tune into the average NFL game, according to Sports Illustrated. In 2019, 102 million people tuned in to watch the Super Bowl.

And, sports are way more than American football. According to FIFA, 3.572 billion people watched the 2018 FIFA World Cup. That’s more than half of the global population aged four and over.

In other words, there is major opportunity to be had in investing and capitalizing on society’s fascination with sports.

In 2019, the sports industry in the United States topped $73 billion. It is anticipated to reach $83 billion by 2023. In part, this is because of the growing number of industry players.

The sports market has four primary segments: gate receipts (ticket sales for live sporting events), sponsorship, media rights and merchandising. That’s just scratching the surface.

Outside of the stadiums, technology in sports is helping fans to follow their favorite teams more closely than ever before. Technology is also changing the sports ecosystem in both some expected and some unexpected ways.

Can You Invest in Sports?

When it comes to investing in sports, opportunity abounds, especially for those who think beyond the playing field.

Think back to your favorite hat or jersey, and then to the millions of sports lovers wearing something similar that represents the team that they follow.

For investors, that means money can be well served in merchandising via publicly traded sports apparel manufacturers such as Nike, Under Armour, and Lululemon Athletica, top retailers like Dick’s Sporting Goods, or even equipment manufacturers such as Brunswick Corporation. This type of investing is ideal for those with an interest in investing in physical products.

Other less tangible opportunities include investing in the broadcasting of sports. ESPN, the world’s largest sports broadcaster, is owned by Walt Disney (NYSE:DIS). The station is a money-maker for Disney, offering live coverage of some of the most-watched sporting events.

By 1990, The Wall Street Journal ranked ESPN the # 1 channel on cable with 54.8 million subscribers, ahead of CNN & MTV at the time. The channel launched the streaming service ESPN+ in 2018, to provide expanded access to select live MLB, NHL, NBA, and MLS games, in addition to other sports offerings from boxing to cricket.

If ESPN isn’t interesting, there’s also the option of investing in publicly traded companies that own interests in professional sports teams. For example, MSG Networks (NYSE: MSGN), owns the New York Knicks and Madison Square Garden.

Investors can also consider venues. The MGM Grand Casino in Las Vegas, NV (NYSE: MGM) is a tourist hotspot. With its MGM Garden Arena in Las Vegas, it is one of the premier sports venues hosting major events like All Elite Wrestling’s inaugural event, Double or Nothing. According to All Elite Wrestling, the event sold out in four minutes. The Garden Arena also hosts professional boxing matches, UFC mixed martial arts events, amongst many others.

Why Invest in Sports?

The sports industry is growing and changing. According to Deloitte’s 2020 Sports Industry Outlook, the five trends likely to have the greatest impact on the industry are: (1) The rise of women’s sports, (2) The continued evolution of esports, (3) Legalized sports betting, (4) College athletes maximizing their short-term value, and (5) 5G and sports in the cloud.

And, perhaps to everyone’s surprise, sports are no longer strictly physical in nature.

Technology is not only helping fans to connect with their teams, individual athletes, and other forms of sports entertainment more than ever before, it’s allowing sports enthusiasts to attract their own audiences through eSports.

eSports are described as the world of “competitive, organized video gaming.” According to research firm Newzoo, the number of esports viewers worldwide will grow from 380 million to 589 million by 2020. It’s predicted that eSports viewership will eventually surpass even that of mainstream sports.

And, big companies are taking notice.

Amazon acquired Twitch streaming service in 2014. Now valued at $3.79 billion, Twitch has an average of 15 million viewers each day who tune in to watch or host live streams.

Sports technology goes beyond even the rise of esports to training and filming. Consider wearables, virtual reality used by athletes to train, and the advancing drone technology that captures live games like never before. These applications of tech are all opening up the market for more investment than ever before.

An investment in sports, with their eager and loyal fanbases and emerging technology applications, includes a world of opportunity beyond the action on the playing field.

How to Invest in Sports

But sports and its related industries are spread out and difficult for investors to access directly. Investing in the sector via an ETF or mutual fund, however, is a good way to bring these different industries together to gain exposure to this high-potential segment. A search on Magnifi indicates there are a number of ways for investors to access sports this way.

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The information and data are as of the May 28, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

Travel

It will come as no surprise that the global travel sector has been hit extremely hard by the ongoing COVID-19 pandemic. Planes everywhere are grounded, beaches and restaurants sit empty, and people everywhere wonder when things may return to normal.

According to the World Travel & Tourism Council, the global travel and tourism sector accounts for 10.3% of global gross domestic product and supports 330 million jobs worldwide. From car rental companies to hotels, there is no corner of the travel sector that has been untouched by the pandemic.

Even though countries around the world are beginning to ease lockdowns and discuss how to reopen responsibly, COVID-19’s impact on the global travel sector has been staggering. The U.S. Travel Association expects a $519 billion decline in travel spending in the U.S. in 2020, with travel-related job losses reaching eight million by the end of April alone.

These projections, though undeniably bleak, do not capture the long-term trajectory of the travel sector.

In the short-term, travel-related businesses are going to suffer mightily. In the long-term, however, the pandemic will end and people will start traveling again. The pandemic will not erase the essential need for travel, but it will change how we travel. Industry experts anticipate that technology will play an increasingly important role in helping to limit physical contact between people and surfaces.

Airports, for instance, are likely going to increasingly implement new technologies that provide for a less crowded and more touchless travel experience. Airports were already moving in this direction, but the painful lessons of COVID-19 will accelerate the transition.

Amid all the doom and gloom, it is important to note that massive disruptions, though terribly painful, ultimately ignite innovation and drive creative problem solving.

Airbnb was founded in 2008, in the depths of the Great Recession, and became a wildly popular solution to the problem of soaring rent prices. By 2018, Airbnb owned about 20% of the entire U.S. consumer lodging market.

The global travel sector is down, but not out. New companies will emerge from this crisis and disrupt the sector in ways we cannot anticipate, and established companies will need to innovate, streamline, and modernize in order to draw customers back. In this space, there may be opportunities for intrepid investors.

For those interested in the investment potential of this crucial sector, there are a few key points to understand.

What Makes up the Travel Industry?

The travel sector is vast and contains many industries, including transportation, lodging, food and beverage, entertainment, and more. Travel may be domestic (within one’s home country) or international (outside of one’s home country), and may be for pleasure (tourism) or business.

The economic significance of the travel sector is enormous. For example, international and domestic travelers in the U.S. directly spent about $1.1 trillion in 2019. This spending supported 15.8 million jobs and generated $179.7 billion in tax revenue.

In comparison, in 2019, U.S. consumers spent about $400 billion on consumer technology and about $460 billion on new vehicles.

As a percentage of gross domestic product (GDP), the travel sector’s weight varies significantly from country to country. For example, 2.9% of the U.S.’s GDP is attributed to travel, while 15% of Spain’s GDP and 13% of Italy’s GDP are attributed to travel.

The immediate economic impacts of the pandemic lockdown will be most acutely felt in countries where travel spending represents a large portion of overall GDP, and governments around the world are scrambling to develop recovery plans to prevent layoffs and bankruptcies. In mid-April, U.S. airlines agreed to a deal with the federal government for about $25 billion in assistance in exchange for airlines continuing to pay employees through September 30th. 70% of this federal assistance comes in the form of a one-time cash grant that does not need to be repaid, while the remaining 30% comes in the form of low-interest loans that must be repaid over 10 years.

The Treasury secretary, Steven Mnuchin, said in a statement that the agreement would “help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers.”

Why Invest in Travel?

The travel sector is in survival mode at the moment. The name of the game at this point is to maximize efficiency and raise enough money to cover costs while the pandemic runs its course.

Government assistance will help in the short-term, but in the long-term people will need to start traveling again in order for businesses to stay afloat. Looking at the situation pessimistically, it is possible that a prolonged shutdown will lead to a recession, and people travel less during recessions.

On the other hand, if the pandemic is brought under control in the near future, it is also possible that demand for travel will increase sharply. Another possibility is one in which demand for domestic travel increases while demand for international travel stays low.

There is some evidence that this last possibility may be the most likely. After easing lockdowns and reopening the economy, domestic air travel in China has doubled over the past two months.

After weeks (and in some places, months) of lockdown, people everywhere are eager to leave their homes. One recent survey of 2,000 travelers found that for 82% of respondents, travel was only temporarily paused, and 42% would be ready to make travel reservations if there were no deposits required or cancellation fees.

There is still enthusiasm and demand for travel, but the timing of when and how travelers can make their plans a reality remains to be seen. For investors interested in capitalizing on a resurgent travel market, it will be crucial to stay informed and keep a close eye on public sentiment, easing or tightening of government travel restrictions, and the market’s ability to meet demand when it returns.

How to Invest in Travel

Naturally, investing in an industry in crisis can be risky, but travel-related ETFs and mutual funds allow investors to access the space without tying them to any one company. A search on Magnifi suggests there are a number of ways to gain access to the travel segment via these funds.

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The information and data are as of the April 30, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

Forestry

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One of the more interesting quotes often attributed to famed investor Warren Buffett concerns planning for the future: “Someone’s sitting in the shade today because someone planted a tree a long time ago.”

Forests take decades to grow and mature and only moments to destroy. Properly managing a forest involves meeting the economic necessities of the present while laying the groundwork for ecological health and economic potential into the future. Forests provide countless, critical ecosystem services, including storing and purifying water, stabilizing soil and preventing erosion, capturing carbon dioxide from the atmosphere, and fostering biodiversity.

Forests also provide significant economic benefits, including timber for construction, wood pulp for paper, and firewood for heating and cooking.

Historically, the ecosystem services and economic benefits of forests have often been in conflict with each other, with people often placing short-term economic benefits above long-term ecosystem health, ultimately at the cost of both.

For a recent example of this conflict, look no further than the 2019 Amazon rainforest wildfires. In an attempt to clear land for cattle grazing, ranch owners across the shrinking Amazon rainforest lit fires that quickly spread out of control, burning an estimated 2.3 million acres of forest and darkening the midday sky of cities hundreds of miles away.

Forests must be carefully managed in order to provide mankind with crucial economic benefits while also performing essential ecological functions. Millions of acres of burned rainforest may provide ranchers with a temporary economic boom in terms of a larger grazing area, but the long-term effects of haphazardly clearing forests result in dire ecological and economic costs.

Professionals in the forestry industry work to achieve a sustainable balance between the environmental and economic demands placed on forests. Though the management of forests is a very old profession indeed, the forestry industry is currently in the midst of a rapid modernization as business and environmental interests implement technological innovations that increase profitability and improve ecological health.

This modernization is especially significant because of the role forests play in fighting climate change. Forestry professionals are looking to innovation to help them do more with less, and the growing urgency to address climate change will likely mean that innovation will be highly valued.

For those interested in the investment potential of this important industry, there are a few key points to understand.

What is forestry?

The North Carolina Forestry Association defines forestry as “The art and science of managing forests to produce various products and benefits including timber, wildlife habitat, clean water, biodiversity and recreation.”

As an industry, forestry is vast, encompassing a multitude of business operations concerned with harvesting, transporting, refining, and distributing forest products. Deeper still is the underlying machinery and technology that make modern forestry possible. 100+ years ago, harvesting timber often involved men felling trees with axes or saws and transporting the timber to a sawmill via mule train. These days, timber is often harvested using cutting-edge technology, such as the cut-to-length (CTL) harvesting method. With CTL harvesting, specialized equipment cuts, cleans, and loads logs for transport in a matter of seconds, all while operators are safely inside the machine cabs and away from falling branches and dangerous terrain.

There is a growing movement in the forestry industry towards what is referred to as “precision forestry.” Precision forestry is an approach to managing forests that utilizes advanced technology to unlock greater economic and environmental value through improved information gathering and operational control.

For instance, lidar is a cutting-edge surveying technology that uses lasers to generate extremely detailed maps. After mapping a forested area using lidar, forestry professionals are able to accurately estimate the quantity of standing timber, as well as where the access road should be built and which machinery should be brought in to do the job. Better information through technologies like lidar means that forest managers are able to make decisions that improve cost-efficiency and minimize environmental damage.

When combined with other cutting-edge technologies, such as drones, soil sensors, and IoT-integrated devices throughout the harvesting and reforesting process, precision forestry is set to unlock significant value across the forestry industry.

Why invest in forestry?

While the accelerated adoption of advanced technologies is likely to improve cost-efficiency and drive innovation across the forestry industry in the coming years, current trends indicate that the industry faces tough headwinds. The demand for construction lumber, which surged in the years following the Great Recession, is waning, and domestic producers are facing increased competition from foreign lumber firms.

In the U.S., industry performance is highly correlated with the strength of the housing market: a robust housing market usually means more new homes and an increased demand for wood products.

For instance, Weyerhaeuser (the largest forest product company in the U.S.) experienced a sharp stock price drop as a result of the Great Recession and the collapsing housing market, from a high of $86 per share in early 2007 to a low of $15 per share in mid-2010.

U.S. revenues from forest products in 2019 totaled about $128 billion, and revenues from exports of forest products in 2019 totaled about $16 billion. Paper mills, which currently comprise the single largest segment of the U.S. forestry market, are forecast to see revenue decrease by -2.6% annually over the next five years. Sawmills and wood production, the second-largest segment, are forecast to see revenue increase by 1.1% annually over the next five years.

The segment with the fastest projected growth is prefabricated home manufacturing (think mobile or modular homes), which is forecast to see revenue increase by only 2.2% annually over the next five years – a sharp decline from the 8.6% annual growth the segment saw during the previous five years.

Successfully investing in forestry involves understanding the underlying market forces driving industry performance and trends, while assessing the value of a mid or long-term stake in the industry relative to other, higher-performing industries.

How to invest in forestry

However, forestry is a legacy industry that is dominated by a few major players. That means investors have few choices when investing directly, and that fact puts them at risk in the case of an industry-wide downturn. Investing in forestry via related ETFs and mutual funds, though, allows investors to access the space without tying them to any one company. A search on Magnifi suggests there are a number of ways to gain access to this segment via these funds.

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The information and data are as of the April 12, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

5G

[5G is Just Part of it. Invest in Mobile Technology as a Whole.]

Although 5G appears to be a relatively new trend, it has been in the works for much of the last decade. This new type of internet access, which is anticipated to potentially replace in-home WiFi in the near future, is beginning to emerge among a few select carriers. Verizon, T-Mobile, and other popular carriers are making it easy for their current customers to transition from 4G LTE to 5G mobile internet, which is a stepping stone for applying the technology to other Wi-Fi-enabled devices in the future.

But investing in 5G while the concept is still relatively new, you can gain an edge over the competition by being one of the first to support an up-and-coming service that is likely to have a strong impact on the future of mobile internet.

What Is 5G?

Although some people may simply think of 5G as a replacement for WiFi, the overall potential of the technology is much more complex. First and foremost, 5G is beginning to replace the 4G LTE connection that most cell phone carriers currently use to provide internet access when a reliable WiFi connection is not available. 4G, which came out approximately a decade ago, was a modern replacement for the primitive 3G and 2G mobile internet of early cell phones. Each version made new features possible, increased the speed and capability of cellular data, and boosted the range at which cell phones could get a reliable signal. Like previous upgrades, the widespread release of 5G technology is expected to increase our ability to immediately access the information we need from anywhere in the world.

[What will 5G mean for the future of video streaming?]

5G coverage is divided into three groups: low-band spectrum, mid-band spectrum, and high-band spectrum. High-band spectrum, which is the classification that most major carriers are currently focusing on, generally provides the strongest and fastest signals. However, this type of spectrum has a much more difficult time reaching through buildings than low-band and mid-band spectrum. For this reason, it is important to carefully consider the pros and cons of each type of spectrum to get an idea of which is likely to be the most successful in your area before choosing one to purchase or invest in.

Why Invest in 5G

Although the 2020 5G market is expected to be in the range of $5 billion, 5G technology is anticipated to grow exponentially over the next five years, reaching over $650 billion by 2026.

The reason for this is the fact that widespread 5G coverage has not yet replaced 4G LTE and WiFi, in part because of regulatory hurdles and delays. Once those issues are resolved, it is expected that 5G adoption will take off nationwide, but it’s still not clear what that timeline will look like and how soon all of this will happen. Still, that explosive potential is why this up-and-coming form of mobile internet is an important area for investors that are interested in the latest technology to keep their eyes on.

After all, like many emerging industries, 5G technology is being pioneered by a handful of standout companies, both large incumbents and fast-growing startups. And it’s still early in this cycle. Investors who get in on 5G now will have far more upside to ride up than those that wait until the technology is fully rolled out and in broad use.

How to Invest in 5G

However, like many types of new technology, investing in 5G does come with potential risks. Although 4G, WiFi, Bluetooth, and other older signals have been studied in-depth as far as both immediate and long-term safety, not as much is currently known about the impact of long-term exposure to 5G’s electromagnetic fields. What’s more, it’s not yet clear how soon the national 5G roll-out will actually happen nor which companies will take the lead.

Investing in the sector via an ETF or mutual fund, however, is a good way to counter these risks while still gaining exposure to this high-potential segment. A search on Magnifi indicates there are a number of ways for investors to access 5G this way.

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The information and data are as of the April 8, 2020 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.