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J&J ETFs to Shine Bright as FDA Grants EUA for Coronavirus Vaccine
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The world will now receive the first single-shot vaccine in the battle against the coronavirus pandemic as the FDA has awarded the Emergency Use Authorization (EUA) to COVID-19 vaccine that has been developed by the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ - Free Report) . The company has also informed that the U.S. Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) has recommended its COVID-19 vaccine. In fact, per the company, the ACIP recommendation will be sent further to the Director of the CDC and the U.S. Department of Health and Human Services (HHS) for assessment and adoption.
Johnson & Johnson also aims to later apply to the FDA for a Biologics License Application (BLA) this year. It is worth noting that the approval was backed by positive data from the Phase 3 ENSEMBLE study. According to the company, starting 28 days after vaccination, the data reflected that the vaccine demonstrated 85% efficiency in protecting against severe diseases across all regions evaluated along with COVID-related hospitalizations and deaths.
Going on, in comparison to rivals, J&J’s coronavirus vaccine candidate enjoys certain advantages. J&J’s coronavirus vaccine is developed using a technology with proven safety standards in vaccines for other diseases. Moreover, the vaccine needs just one shot instead of two and is also not required to be stored frozen, per The New York Times report.
Johnson & Johnson is staying firm with its decision to bring the COVID-19 vaccine into circulation on a not-for-profit basis for emergency use. It has started shipping immediately and aims to deliver more than 20 million doses to the U.S. government in March and targets 100 million doses in the first half of 2021.
This pharmaceutical giant has also submitted a European Conditional Marketing Authorisation Application to the European Medicines Agency and has informed about its filing for an Emergency Use Listing (EUL) with the World Health Organization for its COVID-19 vaccine candidate. Notably, South Africa has entered into an agreement with Johnson & Johnson to receive 11 million COVID-19 vaccine doses, per a Reuters article.
ETFs That Can Gain
The news has put the spotlight on a number of ETFs that could benefit the most due to their high exposure to J&J. Let’s take a look at these funds:
This ETF provides exposure to 43 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for about 23% share. The product has charges 42 bps in fees (read: Pharma ETFs in Focus Post Q4 Earnings).
The Health Care Select Sector SPDR Fund (XLV - Free Report)
The most-popular healthcare ETF, XLV follows the Health Care Select Sector Index. Expense ratio comes in at 0.12%. In total, the fund holds 63 securities in its basket, with JNJ taking the top spot, accounting for 9.9% of the assets (read: JNJ Touches New Highs Post Solid Q4 Earnings: ETFs in Focus).
iShares Evolved U.S. Innovative Healthcare ETF
This actively-managed ETF employs data science techniques to identify companies with exposure to the innovative healthcare sector. Holding 251 stocks in its basket, JNJ is the top firm with a 9.6% allocation. The product charges 18 bps in annual fees.
This fund offers exposure to 123 securities by tracking the Dow Jones U.S. Health Care Index. Here again, Johnson & Johnson dominates the fund’s returns with 8.8% of the total assets. The product charges 43 bps in annual fees (read: Healthcare ETFs in Focus on UnitedHealth's Solid Q4 Earnings).
This ETF tracks the Nasdaq US Smart Pharmaceuticals Index and holds 27 stocks in its basket. Of these, Johnson & Johnson occupies the top position with an 8.5% allocation. It charges 60 bps in annual fees.
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J&J ETFs to Shine Bright as FDA Grants EUA for Coronavirus Vaccine
The world will now receive the first single-shot vaccine in the battle against the coronavirus pandemic as the FDA has awarded the Emergency Use Authorization (EUA) to COVID-19 vaccine that has been developed by the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ - Free Report) . The company has also informed that the U.S. Centers for Disease Control and Prevention's (CDC) Advisory Committee on Immunization Practices (ACIP) has recommended its COVID-19 vaccine. In fact, per the company, the ACIP recommendation will be sent further to the Director of the CDC and the U.S. Department of Health and Human Services (HHS) for assessment and adoption.
Johnson & Johnson also aims to later apply to the FDA for a Biologics License Application (BLA) this year. It is worth noting that the approval was backed by positive data from the Phase 3 ENSEMBLE study. According to the company, starting 28 days after vaccination, the data reflected that the vaccine demonstrated 85% efficiency in protecting against severe diseases across all regions evaluated along with COVID-related hospitalizations and deaths.
Going on, in comparison to rivals, J&J’s coronavirus vaccine candidate enjoys certain advantages. J&J’s coronavirus vaccine is developed using a technology with proven safety standards in vaccines for other diseases. Moreover, the vaccine needs just one shot instead of two and is also not required to be stored frozen, per The New York Times report.
Johnson & Johnson is staying firm with its decision to bring the COVID-19 vaccine into circulation on a not-for-profit basis for emergency use. It has started shipping immediately and aims to deliver more than 20 million doses to the U.S. government in March and targets 100 million doses in the first half of 2021.
This pharmaceutical giant has also submitted a European Conditional Marketing Authorisation Application to the European Medicines Agency and has informed about its filing for an Emergency Use Listing (EUL) with the World Health Organization for its COVID-19 vaccine candidate. Notably, South Africa has entered into an agreement with Johnson & Johnson to receive 11 million COVID-19 vaccine doses, per a Reuters article.
ETFs That Can Gain
The news has put the spotlight on a number of ETFs that could benefit the most due to their high exposure to J&J. Let’s take a look at these funds:
iShares U.S. Pharmaceuticals ETF (IHE - Free Report)
This ETF provides exposure to 43 companies that manufacture prescription or over-the-counter drugs or vaccines by tracking the Dow Jones U.S. Select Pharmaceuticals Index. Of these, Johnson and Johnson takes the top spot, accounting for about 23% share. The product has charges 42 bps in fees (read: Pharma ETFs in Focus Post Q4 Earnings).
The Health Care Select Sector SPDR Fund (XLV - Free Report)
The most-popular healthcare ETF, XLV follows the Health Care Select Sector Index. Expense ratio comes in at 0.12%. In total, the fund holds 63 securities in its basket, with JNJ taking the top spot, accounting for 9.9% of the assets (read: JNJ Touches New Highs Post Solid Q4 Earnings: ETFs in Focus).
iShares Evolved U.S. Innovative Healthcare ETF
This actively-managed ETF employs data science techniques to identify companies with exposure to the innovative healthcare sector. Holding 251 stocks in its basket, JNJ is the top firm with a 9.6% allocation. The product charges 18 bps in annual fees.
iShares U.S. Healthcare ETF (IYH - Free Report)
This fund offers exposure to 123 securities by tracking the Dow Jones U.S. Health Care Index. Here again, Johnson & Johnson dominates the fund’s returns with 8.8% of the total assets. The product charges 43 bps in annual fees (read: Healthcare ETFs in Focus on UnitedHealth's Solid Q4 Earnings).
First Trust Nasdaq Pharmaceuticals ETF (FTXH - Free Report)
This ETF tracks the Nasdaq US Smart Pharmaceuticals Index and holds 27 stocks in its basket. Of these, Johnson & Johnson occupies the top position with an 8.5% allocation. It charges 60 bps in annual fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>