5 Questions on Healthcare with Investment Partner, Dr David Song

What is your longer-term outlook for healthcare equities, and why does the opportunity look attractive today?

We are constructive on healthcare equities over the long term. In our view, the sector is emerging from a prolonged bear market with valuations still compelling, while innovation, policy clarity, and strategic interest from larger buyers are all improving. That creates a setup where fundamentals can continue to get better before the market has fully repriced the opportunity.

Within that backdrop, where do you see the most compelling healthcare innovation opportunities in 2026?

We see a few areas standing out. In chronic disease, Eli Lilly’s oral, non-peptide GLP-1 is one of the clearest potential catalysts for 2026, with the potential to broaden access and expand the obesity market further. In oncology, Revolution Medicines’ pancreatic cancer data is one of the more closely watched events, and more broadly we continue to see durable innovation and strategic interest in cancer. We also think medtech and cardiometabolic disease remain important areas of opportunity.

How do you see AI reshaping healthcare, and where do you expect the biggest investment implications to emerge?

We think AI is becoming more meaningful in healthcare because it is moving from concept to execution. The biggest implications are likely to emerge across drug development, manufacturing, and healthcare delivery, where better speed, efficiency, and decision-making can create real economic value. More broadly, we think healthcare is one of the more underappreciated AI opportunities because the sector can benefit across the value chain while still trading at relatively undemanding valuations.

What signals matter most to you when identifying the start of a new cycle versus a temporary rebound?

The main things we watch are improving sentiment from management teams, easing policy uncertainty, visible M&A intent, and concrete product or clinical catalysts that can carry into the following year. That is part of why the current backdrop looks more constructive to us than a simple bounce. The setup is being supported by better tone across pharma, biotech, and medtech, clearer strategic appetite from larger companies, and identifiable innovation catalysts rather than just a short-term move in risk appetite.

Against that backdrop, how should investors think about Tema’s Oncology ETF (CANC) and your Heart & Health ETF (HRTS) relative to a broad biotech index?

Many investors use broad biotech to own the industry in one trade, but that has its pitfalls. Some of the best-known funds in the space are equal-weighted, which can create meaningful exposure to smaller, more speculative names and less ability to emphasize where innovation and commercial potential are strongest.

Against that backdrop, CANC and HRTS are more targeted approaches. CANC invests in biotech companies shaping the future of cancer therapeutics and care. HRTS is a healthcare fund that invests in companies advancing the prevention and treatment of chronic conditions, including heart disease, diabetes, and obesity. In that sense, both funds offer something distinct from broad biotech beta. 

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