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.
Race for Coronavirus Vaccine Heats Up: Biotech ETFs to Gain
Read MoreHide Full Article
The COVID-19 pandemic, which infected more than 5.6 million people globally claiming more than 340,000 lives and halted economic activities by forcing people to stay indoors, has kept biotech players all over the world on their toes for a vaccine. This new opportunity has made the sector the most attractive one to investors.
Race for Vaccine Heats Up
Several companies are working on immunization against the novel coronavirus with more than 100 vaccines in the pipeline and a dozen that have made it to human trials.
Moderna (MRNA - Free Report) is leading the way with promising results in an early-stage clinical trial for a COVID-19 vaccine. The phase 1 trial developed neutralizing antibodies in coronavirus patients, a promising finding that has propelled the vaccine messenger RNA (mRNA)-1273 to the next phase of clinical testing. Inovio Pharmaceuticals (INO) is currently in its phase 1 clinical study of experimental COVID-19 DNA vaccine INO-4800, which began on Apr 6. Meanwhile, Novavax (NVAX - Free Report) has started the phase 1 clinical trial of the coronavirus vaccine candidate called NVX-CoV2373 and has enrolled the trial’s first participants, with preliminary results expected in July (read: Is Moderna Winning the COVID-19 Vaccine Race? ETFs to Gain).
Other drug giants also joined the race. Pfizer (PFE - Free Report) has begun testing a coronavirus vaccine, mRNA, in the United States in collaboration with German biotech company BioNTech BNTX. The initial trial will involve 360 volunteers, and the first subjects have already received injections. Sanofi (SNY - Free Report) has joined forces with GlaxoSmithKline (GSK - Free Report) to develop a coronavirus vaccine. Both drug makers plan to begin initial clinical tests of the vaccine prototype in the second half of 2020. The vaccine should be available in the second half of 2021, provided the results are positive. Johnson & Johnson (JNJ - Free Report) is expected to begin phase 1 trial for its coronavirus vaccine by September 2020.
Merck (MRK - Free Report) is the latest candidate to jump into the COVID-19 race with the development of two vaccines and one antiviral treatment. The drug maker struck a deal to buy Vienna-based vaccine maker Themis Bioscience to accelerate the development of a COVID-19 vaccine and would collaborate with research nonprofit IAVI to develop two separate vaccines. It also announced a partnership with privately held Ridgeback Biotherapeutics to develop an experimental oral antiviral drug (read: Stocks & ETFs Beneficiaries of Coronavirus Vaccine Ramp-Up).
Given rising spending on drugs and healthcare all over the world, investors should tap the opportune moment by investing in the biotech sector. While buying an individual stock is definitely an option, biotech ETFs could be a less risky way to tap the same trends as they offer diversified exposure across a number of companies.
This fund offers exposure to 24 companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment by tracking the MVIS US Listed Biotech 25 Index. It has amassed $458 million in its asset base and charges 35 basis points in fees per year. The ETF sees a light volume of 25,000 shares per day on average and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
This fund provides exposure to 210 U.S. biotechnology and pharmaceutical companies by tracking the Nasdaq Biotechnology Index. It is the most-popular fund in the biotech space with AUM of $8.7 billion and average daily volume of 3.3 million shares. IBB charges 47 bps in annual fees and has a Zacks ETF Rank #2 with a High risk outlook (read: Moderna Soars: Biotech ETFs in Focus).
With AUM of $5.4 billion, XBI provides equal-weight exposure across 122 biotechnology stocks by tracking the S&P Biotechnology Select Industry Index. It has 0.35% in expense ratio and trades in average daily volume of 6.7 million shares. The fund has a Zacks ETF Rank #2 with a High risk outlook.
This is an actively managed ETF, focusing on companies likely to benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. With AUM of $1.1 billion, the fund holds 36 stocks in its basket with 0.75% in expense ratio. It trades in average daily volume of 298,000 shares.
This fund has a novel approach to biotechnology investing with exposure to companies that are in the clinical-trial stage. This can easily be done by tracking the LifeSci Biotechnology Clinical Trials Index. BBC has amassed $49.4 million in its asset base and charges 79 bps in fees per year from investors. It trades in a lower average daily volume of around 35,000 shares and holds 95 securities in its basket. The product carries a Zacks ETF Rank #3 (Hold) with a High risk outlook.
This ETF has accumulated $33.7 million since its inception on Apr 5, 2019. It seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics and biotechnology. The product follows the Solactive Genomics Index, charging 68 bps in annual fees. It holds 41 stocks in its basket and trades in average daily volume of 16,000 shares (read: Profit from the Genomics Market Momentum With These ETFs).
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:
Image: Bigstock
Race for Coronavirus Vaccine Heats Up: Biotech ETFs to Gain
The COVID-19 pandemic, which infected more than 5.6 million people globally claiming more than 340,000 lives and halted economic activities by forcing people to stay indoors, has kept biotech players all over the world on their toes for a vaccine. This new opportunity has made the sector the most attractive one to investors.
Race for Vaccine Heats Up
Several companies are working on immunization against the novel coronavirus with more than 100 vaccines in the pipeline and a dozen that have made it to human trials.
Moderna (MRNA - Free Report) is leading the way with promising results in an early-stage clinical trial for a COVID-19 vaccine. The phase 1 trial developed neutralizing antibodies in coronavirus patients, a promising finding that has propelled the vaccine messenger RNA (mRNA)-1273 to the next phase of clinical testing. Inovio Pharmaceuticals (INO) is currently in its phase 1 clinical study of experimental COVID-19 DNA vaccine INO-4800, which began on Apr 6. Meanwhile, Novavax (NVAX - Free Report) has started the phase 1 clinical trial of the coronavirus vaccine candidate called NVX-CoV2373 and has enrolled the trial’s first participants, with preliminary results expected in July (read: Is Moderna Winning the COVID-19 Vaccine Race? ETFs to Gain).
Other drug giants also joined the race. Pfizer (PFE - Free Report) has begun testing a coronavirus vaccine, mRNA, in the United States in collaboration with German biotech company BioNTech BNTX. The initial trial will involve 360 volunteers, and the first subjects have already received injections. Sanofi (SNY - Free Report) has joined forces with GlaxoSmithKline (GSK - Free Report) to develop a coronavirus vaccine. Both drug makers plan to begin initial clinical tests of the vaccine prototype in the second half of 2020. The vaccine should be available in the second half of 2021, provided the results are positive. Johnson & Johnson (JNJ - Free Report) is expected to begin phase 1 trial for its coronavirus vaccine by September 2020.
Merck (MRK - Free Report) is the latest candidate to jump into the COVID-19 race with the development of two vaccines and one antiviral treatment. The drug maker struck a deal to buy Vienna-based vaccine maker Themis Bioscience to accelerate the development of a COVID-19 vaccine and would collaborate with research nonprofit IAVI to develop two separate vaccines. It also announced a partnership with privately held Ridgeback Biotherapeutics to develop an experimental oral antiviral drug (read: Stocks & ETFs Beneficiaries of Coronavirus Vaccine Ramp-Up).
Given rising spending on drugs and healthcare all over the world, investors should tap the opportune moment by investing in the biotech sector. While buying an individual stock is definitely an option, biotech ETFs could be a less risky way to tap the same trends as they offer diversified exposure across a number of companies.
VanEck Vectors Biotech ETF (BBH - Free Report)
This fund offers exposure to 24 companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment by tracking the MVIS US Listed Biotech 25 Index. It has amassed $458 million in its asset base and charges 35 basis points in fees per year. The ETF sees a light volume of 25,000 shares per day on average and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
iShares Nasdaq Biotechnology ETF (IBB - Free Report)
This fund provides exposure to 210 U.S. biotechnology and pharmaceutical companies by tracking the Nasdaq Biotechnology Index. It is the most-popular fund in the biotech space with AUM of $8.7 billion and average daily volume of 3.3 million shares. IBB charges 47 bps in annual fees and has a Zacks ETF Rank #2 with a High risk outlook (read: Moderna Soars: Biotech ETFs in Focus).
SPDR S&P Biotech ETF (XBI - Free Report)
With AUM of $5.4 billion, XBI provides equal-weight exposure across 122 biotechnology stocks by tracking the S&P Biotechnology Select Industry Index. It has 0.35% in expense ratio and trades in average daily volume of 6.7 million shares. The fund has a Zacks ETF Rank #2 with a High risk outlook.
ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report)
This is an actively managed ETF, focusing on companies likely to benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. With AUM of $1.1 billion, the fund holds 36 stocks in its basket with 0.75% in expense ratio. It trades in average daily volume of 298,000 shares.
Virtus LifeSci Biotech Clinical Trials ETF (BBC - Free Report)
This fund has a novel approach to biotechnology investing with exposure to companies that are in the clinical-trial stage. This can easily be done by tracking the LifeSci Biotechnology Clinical Trials Index. BBC has amassed $49.4 million in its asset base and charges 79 bps in fees per year from investors. It trades in a lower average daily volume of around 35,000 shares and holds 95 securities in its basket. The product carries a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Global X Genomics & Biotechnology ETF GNOM
This ETF has accumulated $33.7 million since its inception on Apr 5, 2019. It seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics and biotechnology. The product follows the Solactive Genomics Index, charging 68 bps in annual fees. It holds 41 stocks in its basket and trades in average daily volume of 16,000 shares (read: Profit from the Genomics Market Momentum With These ETFs).
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 >>