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Though the broad U.S. market saw a tumultuous ride last week with most of the sectors in red, biotechnology was the biggest gainer. This is especially true as the Nasdaq Biotechnology Index jumped 4.9% last week, pushing many ETFs higher.
Virtus LifeSci Biotech Products ETF (BBP - Free Report) has been the biggest beneficiary, rising 7.9%. ETFMG Treatments Testing and Advancements ETF (GERM - Free Report) , First Trust NYSE Arca Biotechnology Index Fund (FBT - Free Report) , ALPS Medical Breakthroughs ETF (SBIO - Free Report) and Invesco Dynamic Biotechnology & Genome ETF (PBE - Free Report) rose at least 6% last week.
Inside The Surge
With the rise in Omicron, biotech companies are working on the development of new vaccines and strategies to tackle the spread of the new COVID-19 variant.
According to the latest study, two shots of the Moderna (MRNA - Free Report) or Pfizer (PFE - Free Report) /BioNTech vaccines or one of Jonson & Johnson’s (JNJ - Free Report) single-dose vaccine appear to offer significantly less protection against the newly-detected Omicron variant in laboratory testing but a booster dose likely restores most of the protection (read: 5 ETFs That Gained More Than 40% in 2021).
A separate study out of South Africa shows that Pfizer’s two-dose vaccine provides a high degree of protection against hospitalization from the fast-spreading Omicron. The study concluded that the vaccine offered only 33% protection against overall infection but 70% protection against hospitalization. It also concluded that while there was a higher risk of reinfections during this current surge, the risk of hospitalization among adults was 29% lower than during the initial wave.
Further, the industry trends are impressive. These include new drug nods, an accelerated pace of innovation, promising drug launches, the growing importance of biosimilars, cost-cutting efforts, an aging population, expanding insurance coverage, the rising middle class, an insatiable demand for new drugs and ever-increasing spending on healthcare.
Virtus LifeSci Biotech Products ETF follows the LifeSci Biotechnology Products Index, which measures the performance of biotechnology companies with at least one drug therapy approved by the FDA.
Holding 55 stocks, Virtus LifeSci Biotech Products ETF has accumulated AUM of $18.9 million and charges 79 bps in fees per year. BBP trades in volume of 2,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) with a High-risk outlook.
ETFMG Treatments Testing and Advancements ETF (GERM - Free Report)
ETFMG Treatments Testing and Advancements ETF offers exposure to biotech companies engaged in the testing and treatments of infectious diseases by tracking the Prime Treatments, Testing and Advancements Index. It is focused on advancements with targeted exposure to the forefront of R&D, vaccines, therapies and testing technologies. ETFMG Treatments Testing and Advancements ETF holds 86 stocks in its basket and charges 68 bps in annual fees (read: 5 Best Sector ETFs of November).
ETFMG Treatments Testing and Advancements ETF has amassed $51.1 million in its asset base and trades in an average daily volume of 14,000 shares.
First Trust NYSE Arca Biotechnology Index Fund (FBT - Free Report)
First Trust NYSE Arca Biotechnology Index Fund follows the NYSE Arca Biotechnology Index, which measures the performance of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services. It holds about 30 securities in its basket and charges 55 bps in annual fees.
First Trust NYSE Arca Biotechnology Index Fund has accumulated $1.7 billion in its asset base and trades in a moderate volume of more than 43,000 shares a day. FBT has a Zacks ETF Rank #3 with a High-risk outlook.
ALPS Medical Breakthroughs ETF provides exposure to companies with one or more drugs in phase II or phase III FDA clinical trials by tracking S-Network Medical Breakthroughs Index. It holds 127 securities in its basket (read: 5 Top-Ranked ETFs to Buy At Bargain Prices).
ALPS Medical Breakthroughs ETF charges 50 bps in fees per year from its investors and trades in a moderate average daily volume of about 18,000 shares. It has AUM of $179.8 million in its asset base and carries a Zacks ETF Rank #3 with a High-risk outlook
Invesco Dynamic Biotechnology & Genome ETF follows the Dynamic Biotech & Genome Intellidex Index and provides exposure to companies engaged in the research, development, manufacture, and marketing and distribution of various biotechnological products, services and processes and companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.
Invesco Dynamic Biotechnology & Genome ETF holds 31 stocks in its basket. The product has managed $272.8 million in its asset base and charges 59 bps in annual fees. Invesco Dynamic Biotechnology & Genome ETF has a Zacks ETF Rank #3 with a High-risk outlook.
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Biotech ETFs That Outperformed Last Week
Though the broad U.S. market saw a tumultuous ride last week with most of the sectors in red, biotechnology was the biggest gainer. This is especially true as the Nasdaq Biotechnology Index jumped 4.9% last week, pushing many ETFs higher.
Virtus LifeSci Biotech Products ETF (BBP - Free Report) has been the biggest beneficiary, rising 7.9%. ETFMG Treatments Testing and Advancements ETF (GERM - Free Report) , First Trust NYSE Arca Biotechnology Index Fund (FBT - Free Report) , ALPS Medical Breakthroughs ETF (SBIO - Free Report) and Invesco Dynamic Biotechnology & Genome ETF (PBE - Free Report) rose at least 6% last week.
Inside The Surge
With the rise in Omicron, biotech companies are working on the development of new vaccines and strategies to tackle the spread of the new COVID-19 variant.
According to the latest study, two shots of the Moderna (MRNA - Free Report) or Pfizer (PFE - Free Report) /BioNTech vaccines or one of Jonson & Johnson’s (JNJ - Free Report) single-dose vaccine appear to offer significantly less protection against the newly-detected Omicron variant in laboratory testing but a booster dose likely restores most of the protection (read: 5 ETFs That Gained More Than 40% in 2021).
A separate study out of South Africa shows that Pfizer’s two-dose vaccine provides a high degree of protection against hospitalization from the fast-spreading Omicron. The study concluded that the vaccine offered only 33% protection against overall infection but 70% protection against hospitalization. It also concluded that while there was a higher risk of reinfections during this current surge, the risk of hospitalization among adults was 29% lower than during the initial wave.
Further, the industry trends are impressive. These include new drug nods, an accelerated pace of innovation, promising drug launches, the growing importance of biosimilars, cost-cutting efforts, an aging population, expanding insurance coverage, the rising middle class, an insatiable demand for new drugs and ever-increasing spending on healthcare.
Virtus LifeSci Biotech Products ETF (BBP - Free Report)
Virtus LifeSci Biotech Products ETF follows the LifeSci Biotechnology Products Index, which measures the performance of biotechnology companies with at least one drug therapy approved by the FDA.
Holding 55 stocks, Virtus LifeSci Biotech Products ETF has accumulated AUM of $18.9 million and charges 79 bps in fees per year. BBP trades in volume of 2,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) with a High-risk outlook.
ETFMG Treatments Testing and Advancements ETF (GERM - Free Report)
ETFMG Treatments Testing and Advancements ETF offers exposure to biotech companies engaged in the testing and treatments of infectious diseases by tracking the Prime Treatments, Testing and Advancements Index. It is focused on advancements with targeted exposure to the forefront of R&D, vaccines, therapies and testing technologies. ETFMG Treatments Testing and Advancements ETF holds 86 stocks in its basket and charges 68 bps in annual fees (read: 5 Best Sector ETFs of November).
ETFMG Treatments Testing and Advancements ETF has amassed $51.1 million in its asset base and trades in an average daily volume of 14,000 shares.
First Trust NYSE Arca Biotechnology Index Fund (FBT - Free Report)
First Trust NYSE Arca Biotechnology Index Fund follows the NYSE Arca Biotechnology Index, which measures the performance of companies in the biotechnology industry that are primarily involved in the use of biological processes to develop products or provide services. It holds about 30 securities in its basket and charges 55 bps in annual fees.
First Trust NYSE Arca Biotechnology Index Fund has accumulated $1.7 billion in its asset base and trades in a moderate volume of more than 43,000 shares a day. FBT has a Zacks ETF Rank #3 with a High-risk outlook.
ALPS Medical Breakthroughs ETF (SBIO - Free Report)
ALPS Medical Breakthroughs ETF provides exposure to companies with one or more drugs in phase II or phase III FDA clinical trials by tracking S-Network Medical Breakthroughs Index. It holds 127 securities in its basket (read: 5 Top-Ranked ETFs to Buy At Bargain Prices).
ALPS Medical Breakthroughs ETF charges 50 bps in fees per year from its investors and trades in a moderate average daily volume of about 18,000 shares. It has AUM of $179.8 million in its asset base and carries a Zacks ETF Rank #3 with a High-risk outlook
Invesco Dynamic Biotechnology & Genome ETF (PBE - Free Report)
Invesco Dynamic Biotechnology & Genome ETF follows the Dynamic Biotech & Genome Intellidex Index and provides exposure to companies engaged in the research, development, manufacture, and marketing and distribution of various biotechnological products, services and processes and companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.
Invesco Dynamic Biotechnology & Genome ETF holds 31 stocks in its basket. The product has managed $272.8 million in its asset base and charges 59 bps in annual fees. Invesco Dynamic Biotechnology & Genome ETF has a Zacks ETF Rank #3 with a High-risk outlook.