We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Coronavirus testing, prevention and treatment has now become the biggest priority for drug companies. Therefore, there is a lot of investor interest in this segment of the market.
The economy has grinded to a halt as a result of aggressive mitigation and containment measures. And while many states have started partial reopening, any plans to reopen on a large scale would greatly depend on a robust testing and tracing system.
An Abbott Laboratories’ (ABT - Free Report) test that provides results in 15 minutes could be a game changer. Tech giants Apple (AAPL - Free Report) and Alphabet’s Google (GOOGL - Free Report) are working together on smartphone apps that would alert people if they came in contact with a virus infected person.
Our lives can return to normal only after an effective vaccine. Many healthcare giants including J&J (JNJ - Free Report) and Pfizer (PFE - Free Report) are working on vaccines. Some of these will be available for testing this fall but for mass consumption globally only early next year. Shares of Moderna (MRNA - Free Report) are surging today after the FDA approved its coronavirus vaccine for phase 2 trial.
Some of the existing drugs used for treating malaria, HIV, rheumatoid arthritis, and Ebola etc. are being examined whether they can be repurposed to treat this disease. The one experts are most hopeful about is Gilead Sciences’ (GILD - Free Report) antiviral drug remdesivir.
Pharma companies may not be able to generate significant revenues from these products anytime soon since billions of dollars will have to be spent on manufacturing facilities, and many may not even be able to make it to market. And most drug companies have pledged not to profit from these drugs at least for now.
Instead of trying to pick winners from the virus, it is better to invest in broader biotech ETFs that stand to benefit from increased investor interest and rising spending on drugs and healthcare all over the world. To learn more about the iShares NASDAQ Biotechnology ETF (IBB - Free Report) , the SPDR S&P Biotech ETF (XBI - Free Report) and the VanEck Vectors Biotech ETF (BBH - Free Report) , please watch the short video above.
While IBB and BBH have done better of late due to their heavy weightings in biotech giants, XBI was one of the top performing ETFs of the past decade. All three have significantly outperformed the S&P 500 index in the past year.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Biotech ETFs Poised to Benefit From Coronavirus
Coronavirus testing, prevention and treatment has now become the biggest priority for drug companies. Therefore, there is a lot of investor interest in this segment of the market.
The economy has grinded to a halt as a result of aggressive mitigation and containment measures. And while many states have started partial reopening, any plans to reopen on a large scale would greatly depend on a robust testing and tracing system.
An Abbott Laboratories’ (ABT - Free Report) test that provides results in 15 minutes could be a game changer. Tech giants Apple (AAPL - Free Report) and Alphabet’s Google (GOOGL - Free Report) are working together on smartphone apps that would alert people if they came in contact with a virus infected person.
Our lives can return to normal only after an effective vaccine. Many healthcare giants including J&J (JNJ - Free Report) and Pfizer (PFE - Free Report) are working on vaccines. Some of these will be available for testing this fall but for mass consumption globally only early next year. Shares of Moderna (MRNA - Free Report) are surging today after the FDA approved its coronavirus vaccine for phase 2 trial.
Some of the existing drugs used for treating malaria, HIV, rheumatoid arthritis, and Ebola etc. are being examined whether they can be repurposed to treat this disease. The one experts are most hopeful about is Gilead Sciences’ (GILD - Free Report) antiviral drug remdesivir.
Pharma companies may not be able to generate significant revenues from these products anytime soon since billions of dollars will have to be spent on manufacturing facilities, and many may not even be able to make it to market. And most drug companies have pledged not to profit from these drugs at least for now.
Instead of trying to pick winners from the virus, it is better to invest in broader biotech ETFs that stand to benefit from increased investor interest and rising spending on drugs and healthcare all over the world. To learn more about the iShares NASDAQ Biotechnology ETF (IBB - Free Report) , the SPDR S&P Biotech ETF (XBI - Free Report) and the VanEck Vectors Biotech ETF (BBH - Free Report) , please watch the short video above.
While IBB and BBH have done better of late due to their heavy weightings in biotech giants, XBI was one of the top performing ETFs of the past decade. All three have significantly outperformed the S&P 500 index in the past year.
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 >>