We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Healthcare ETFs to Gain on $65-Billion Pandemic Protection Plan
Read MoreHide Full Article
The Biden administration recently offered a $65 billion plan that U.S. officials say is aimed at combating the biological threats after the COVID-19 pandemic goes away. The next pandemic will likely be “substantially different” than Covid, and so the U.S. government has started preparing to deal with any future viral threat, said Eric Lander, President Joe Biden’s science advisor and director of the Office of Science and Technology, as quoted on CNBC.
An investment of $65 billion is “modest” if we compare with the fact that the current pandemic has cost the United States an estimated $16 trillion in lost economic output. It’s also smaller than what the nation allocates for other programs, such as missile defense and anti-terrorism, which cost U.S. taxpayers $20 billion and $170 billion a year, respectively, they said, per the CNBC article.
“If major pandemics similar to COVID-19, costing the U.S. roughly $16 trillion, occur at a frequency of every 20 years, the annualized economic impact on the U.S. would be $800 billion per year. Even for somewhat milder pandemics, the annualized cost would likely exceed $500 billion,” officials wrote in the document, CNBC noted.
We would like to note that no matter whether the allocation of the fund is huge or not, the Biden administration’s latest plan would help healthcare and pharma stocks and ETFs.
Healthcare Spending in Focus
The United States would spend a total of $24.2 billion to develop and test new vaccines for a range of viruses and make improvements to vaccine distribution and manufacturing. The plan also calls for spending $11.8 billion on therapeutics, which would permit U.S. scientists and drugmakers develop new antivirals and other drugs and ensure large-scale manufacturing capacity for monoclonal antibody treatments. About $3.1 billion has been assigned to helping the development of next-generation PPE.
Against this backdrop, below we highlight a few healthcare ETFs that should be gainful amid these circumstances.
The Franklin Genomic Advancements ETF seeks capital appreciation by investing in innovative companies related to genomic-based technologies designed to enhance the quality of life. Moderna, Intellia and Biontech are the top three stocks of the fund.
ETFMG Treatments Testing and Advancements ETF
The Prime Treatments, Testing and Advancements Index provides investors with a reference measure that enables them to track both event-driven news and long-term trends of companies engaged in developing treatments and vaccines, or diagnostic technology, in the fight against infectious diseases. Moderna, Biontech and Bio Rad Labs are the top three stocks of the fund.
The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. Johnson & Johnson, Pfizer and Catalent are top three stocks of the fund.
Pacer BioThreat Strategy ETF
The underlying LifeSci BioThreat Strategy Index comprises of U.S. listed stocks of companies whose products or services help protect against, endure, or recover from biological threats to human health. Danaher, Nvidia and Thermo fisher scientific are top three stocks of the fund.
The underlying S&P Health Care Equipment Select Industry Index represents the health care equipment segment of the S&P Total Market Index. BioLife Solutions, Silk Road Medical and ResMed are the top three stocks of the fund.
The underlying Solactive Genomics Index tracks the companies that generate revenues from gene editing, genomic sequencing, development and testing of genetic medicine/therapies, computational genomics and genetic diagnostics, and biotechnology. Intellia Therapeutics, Alnylam Pharmaceuticals and Agilent Technologies are the top three stocks of the fund.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Healthcare ETFs to Gain on $65-Billion Pandemic Protection Plan
The Biden administration recently offered a $65 billion plan that U.S. officials say is aimed at combating the biological threats after the COVID-19 pandemic goes away. The next pandemic will likely be “substantially different” than Covid, and so the U.S. government has started preparing to deal with any future viral threat, said Eric Lander, President Joe Biden’s science advisor and director of the Office of Science and Technology, as quoted on CNBC.
An investment of $65 billion is “modest” if we compare with the fact that the current pandemic has cost the United States an estimated $16 trillion in lost economic output. It’s also smaller than what the nation allocates for other programs, such as missile defense and anti-terrorism, which cost U.S. taxpayers $20 billion and $170 billion a year, respectively, they said, per the CNBC article.
“If major pandemics similar to COVID-19, costing the U.S. roughly $16 trillion, occur at a frequency of every 20 years, the annualized economic impact on the U.S. would be $800 billion per year. Even for somewhat milder pandemics, the annualized cost would likely exceed $500 billion,” officials wrote in the document, CNBC noted.
We would like to note that no matter whether the allocation of the fund is huge or not, the Biden administration’s latest plan would help healthcare and pharma stocks and ETFs.
Healthcare Spending in Focus
The United States would spend a total of $24.2 billion to develop and test new vaccines for a range of viruses and make improvements to vaccine distribution and manufacturing. The plan also calls for spending $11.8 billion on therapeutics, which would permit U.S. scientists and drugmakers develop new antivirals and other drugs and ensure large-scale manufacturing capacity for monoclonal antibody treatments. About $3.1 billion has been assigned to helping the development of next-generation PPE.
Against this backdrop, below we highlight a few healthcare ETFs that should be gainful amid these circumstances.
Franklin Genomic Advancements ETF (HELX - Free Report)
The Franklin Genomic Advancements ETF seeks capital appreciation by investing in innovative companies related to genomic-based technologies designed to enhance the quality of life. Moderna, Intellia and Biontech are the top three stocks of the fund.
ETFMG Treatments Testing and Advancements ETF
The Prime Treatments, Testing and Advancements Index provides investors with a reference measure that enables them to track both event-driven news and long-term trends of companies engaged in developing treatments and vaccines, or diagnostic technology, in the fight against infectious diseases. Moderna, Biontech and Bio Rad Labs are the top three stocks of the fund.
iShares U.S. Pharmaceuticals ETF (IHE - Free Report)
The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. Johnson & Johnson, Pfizer and Catalent are top three stocks of the fund.
Pacer BioThreat Strategy ETF
The underlying LifeSci BioThreat Strategy Index comprises of U.S. listed stocks of companies whose products or services help protect against, endure, or recover from biological threats to human health. Danaher, Nvidia and Thermo fisher scientific are top three stocks of the fund.
SPDR S&P Health Care Equipment ETF (XHE - Free Report)
The underlying S&P Health Care Equipment Select Industry Index represents the health care equipment segment of the S&P Total Market Index. BioLife Solutions, Silk Road Medical and ResMed are the top three stocks of the fund.
Global X Genomics & Biotechnology ETF (GNOM - Free Report)
The underlying Solactive Genomics Index tracks the companies that generate revenues from gene editing, genomic sequencing, development and testing of genetic medicine/therapies, computational genomics and genetic diagnostics, and biotechnology. Intellia Therapeutics, Alnylam Pharmaceuticals and Agilent Technologies are the top three stocks of the fund.