ETF Sectors to Bet on Positive Vaccine News
Zacks Investment Research | Nov 26, 2020 02:25AM ET
The aggravating coronavirus outbreak in the United States and globally is definitely increasing the desperation for a vaccine. Going by Johns Hopkins University data, the United States witnessed the highest new COVID-19 fatalities numbers since May on Nov 24 (per a CNN report). The world’s largest economy has now seen 12,591,163 confirmed cases and 259,925 deaths.
Given that the Thanksgiving week has begun and people are not following guidelines against holiday travel, the United States is expected to see an exponential rise in cases in the days following Thanksgiving, according to a CNN medical analyst Dr. Jonathan Reiner (per a CNN article).
Thus, considering the concerning scenario marked by the COVID-19 spread and fatalities, positive news related to coronavirus vaccine and treatment is definitely lifting the market.
The Dow Jones Industrial Average crossed the 30,000-mark for the first time on Nov 24. Among the major gainers were plane-maker Boeing (NYSE:BA), increasing 3.3%, and oil company Chevron (NYSE:CVX) which was up 5%. Investment banks Goldman Sachs (NYSE:GS) and JPMorgan Chase (NYSE:JPM) also rose 3.8% and 4.6%, respectively. Other major gainers included Disney, American Express (NYSE:AXP) and IBM (NYSE:IBM).
h3 Positive COVID-19 Vaccine Updates Instil Optimism/h3AstraZeneca (NASDAQ:AZN) has announced that an interim analysis of clinical trials reflected that its coronavirus vaccine delivered an average efficacy of 70% in protecting against coronavirus. Notably, the vaccine was evaluated over two different dosing schedules.
Another frontrunner in the coronavirus vaccine race — Moderna (NASDAQ:MRNA) — has come up with encouraging study data relating to mRNA-1273. National Institutes of Health -appointed Data Safety Monitoring Board (DSMB) for the Phase 3 study of mRNA-1273 has informed Moderna that with a vaccine efficacy of 94.5%, the trial has met the pre-mentioned statistical parameter in the study protocol for efficacy.
Pfizer Inc. (NYSE:PFE) and BioNTech SE (NASDAQ:BNTX) have again come up with encouraging updates regarding their coronavirus vaccine candidate, BNT162b2. Notably, BNT162b2 has been found to meet all of the ongoing Phase 3 study’s primary efficacy endpoints post the final efficacy analysis. The data reflects a vaccine efficacy rate of 95% (p
Meanwhile, we note that several other pharma bigwigs and biotech companies are progressing in developing a coronavirus vaccine using different technologies. Pharma giant, J&J (JNJ) is developing its vaccine candidate in a phase III study. Glaxo and Sanofi (NASDAQ:SNY) have partnered to develop a coronavirus vaccine. The companies expect to initiate a phase III study on their adjuvanted coronavirus vaccine candidate by 2020-end. Two biotechs that are also strongly moving with their coronavirus vaccine development are Inovio Pharmaceuticals (NASDAQ:INO) and Novavax (NASDAQ:NVAX).
h3 ETF Sectors to Bet On/h3The introduction of the coronavirus vaccine is expected to help in the economic recovery, especially for sectors which have taken a deep hit from the social-distancing and lockdown measures. Here we highlight safe ETF sectors that are going to be the main beneficiaries from the vaccine introduction:
h3 Biotech ETFs/h3The biotechnology sector has kept its promise of returns so far. From vaccine-related positive news to progress in the development of cell therapies for addressing coronavirus, all kept the sector surging. Notably, the race to introduce vaccine and treatment of coronavirus is opening up opportunities, making the biotech sector a prospective space for investments. Therefore, we highlight a few ETFs that might gain in such a scenario like iShares Nasdaq Biotechnology ETF Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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