Why It May Be 'Just Right' to Invest in Cancer Therapeutics Development Stocks Now

As the economic landscape shifts, savvy investors are eyeing the potential of cancer therapeutics stocks. With inflation in check and interest rates stabilizing, we're seeing the emergence of a 'goldilocks' economy – and that spells opportunity.

But it's not just about economics. The aging population is driving demand for cutting-edge healthcare solutions, making the case for investments in biotech even stronger.

A Goldilocks Scenario: Just Right?

After peaking in June 2022 at 9.1%, inflation, as measured by the U.S. Consumer Price Index (CPI), declined to 3.2% in February 2024.[1] Also, February 2024’s labor report provides evidence that job creation, although down from its post-pandemic highs, is still healthy, but not overheating as evidenced by lower increases in average hourly earnings when compared to a year ago.[2] As a result, the Fed signaled it expects to cut interest rates in 2024[3], which is positive for stock prices.

The Booming Aging Population and its Impact on Healthcare

The global population is rapidly aging. It is estimated that by 2060, over 90 million people in the U.S. will be on Medicare and that there will be 1.7 billion people in the world over 65. But here's the kicker – our median life expectancy is skyrocketing, with no signs of slowing down. For example, in North America, the median life expectancy in 1950 was 68. It increased to 70 in 2000 and is projected to increase to 84 by 2050, according to Stifel Healthcare.[4]

As the population ages and a country’s GDP grows, more money is spent on healthcare. In fact, the report from Stifel Healthcare noted that the more we spend on healthcare as a society, the longer we live. It's a cycle – more spending equals longer lives, and longer lives mean more spending.

In this age of longevity, the convergence of macroeconomics and demographics isn't just a trend – it's rocket fuel for cancer therapeutics stocks. Buckle up for the ride of a lifetime.

How May Individuals Gain Exposure to Cancer Therapeutics Development Stocks?

The Range Cancer Therapeutics ETF (CNCR) seeks to track the performance, before fees and expenses, of the Range Cancer Therapeutics Index. The index aims to track the performance of a portfolio of stocks that are involved in the development and distribution of cancer drugs and treatments.

[1] 12-Month Percentage Change, Consumer Price Index, U.S. Bureau of Labor Statistics website, Retrieved 3/18/24
[2] Employment Situation Summary, U.S. Bureau of Labor Statistics, 12/8/23; Cox, Jeff, US Job Growth Totaled 275,000 in February But Unemployment Rate Rose to 3.9%, CNBC, 3/8/24
[3] Here’s When the Federal Reserve Could Cut Interest Rates in 2024, CNBC, 3/18/24
[4] Why Invest in Biotech?, Stifel Healthcare, 11/23/23

Disclosures

All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.

ETF shares are traded on exchanges and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of an ETFs’ underlying securities. Brokerage commissions will reduce returns.

The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Moreover, investors will not be able to evaluate the Fund against one or more comparable funds on the basis of relative performance until the Funds has established a track record.

The Range Cancer Therapeutics ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the CNCR ETF prospectus, which should be read carefully before investing and can be obtained here or by calling 1-800-617-0004.

Exchange Traded Concepts, LLC serves as the investment advisor to the Fund. The Fund is distributed by Quasar Distributors, LLC. Quasar is not affiliated with Exchange Traded Concepts, LLC.

Cancer Therapeutics Companies Risk. The success of Cancer Therapeutics Companies heavily depends on the outcomes of clinical trials and obtaining necessary regulatory approvals for the development of new drugs and other treatments for cancer-related conditions. These companies face risks related to the failure of clinical trials, unforeseen safety issues, delays in the regulatory approval process, or failure to obtain approvals altogether. Cancer Therapeutics Companies are highly dependent on the development, procurement and marketing of drugs and the protection and exploitation of intellectual property rights. Changes in healthcare policies, reimbursement rates, patent laws, or regulations governing drug development and commercialization can significantly impact industry and individual companies. These changes may affect profitability, market access, and the viability of certain products or technologies.