Moderna ETFs to Rally on Positive COVID-19 Booster Shot News

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Investors can cheer another encouraging development related to the COVID-19 vaccines. The FDA has broadened the emergency use authorization (EUA) approval of Moderna’s MRNA COVID-19 vaccine booster shot at the 50 µg dose level to all adults aged 18 and above. The U.S. Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices (“ACIP”) has also issued a recommendation suggesting a booster dose. In fact, all the 11 ACIP members unanimously recommended the booster dose. 

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The authorization has come at a time when travel restrictions are easing and the outbreak is spreading alarmingly in Europe. Thus, the approval can be further helpful in containing the coronavirus outbreak in the United States. Moderna’s sales figures are also expected to get the boost with the latest approval.

Investors willing to ride Moderna’s gains from the latest nod on the booster shots can consider ETFs like ETFMG Treatments Testing and Advancements ETF GERM, VanEck Biotech ETF BBH, iShares Biotechnology ETF IBB and iShares Genomics Immunology and Healthcare ETF IDNA.

It is important to note that the booster shot can be administered to all individuals aged 18 years and above and have completed the primary vaccination with any of the authorized or approved COVID-19 vaccines. At least six months post-completion of the second dose of the primary series, one can opt for the booster shot.

Moderna ETFs to Gain

Considering the important role played by the coronavirus vaccines in Moderna’s recent earnings results, the latest developments can be a positive for the stock. Interestingly, Moderna reported revenues of $4.8 billion in the third quarter.

The company projects product sales between $15 billion and $18 billion for 2021. Moderna had previously stated that it has advance purchase agreements for its COVID-19 vaccine worth $20 billion in place. However, the supply of some doses scheduled for 2021 is being postponed to 2022 on several factors, including longer delivery lead times for international shipments.

The major increase in revenues was driven by sales of its coronavirus vaccine, which is now approved for temporary/emergency use in several countries. Moreover, grants from an agreement with the Biomedical Advanced Research and Development Authority related to the development of the COVID-19 vaccine drove revenues. Therefore, we discuss a few ETFs that provide exposure to Moderna:

ETFMG Treatments Testing and Advancements ETF GERM

ETFMG Treatments Testing and Advancements ETF is designed to give direct exposure to biotech companies directly engaged in the testing and treatment of infectious diseases.

ETFMG Treatments Testing and Advancements ETF holds 78 stocks in its basket, with Moderna occupying the fifth spot at 4.82% share. The fund has amassed $55.9 million in its asset base. ETFMG Treatments Testing and Advancements ETF charges 68 basis points (bps) in annual fees (read: 7 Best ETFs of the First Nine Months of 2021).

VanEck Biotech ETF BBH

The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development, production, marketing and sales of drugs based on genetic analysis and diagnostic equipment.

VanEck Biotech ETF holds about 25 securities in its basket, with 10.41% exposure to Moderna. Its AUM is $559.9 million and VanEck Biotech ETF has an expense ratio of 0.35% (read: How Are Biotech ETFs Reacting to These Q3 Earnings Releases?).

iShares Biotechnology ETF IBB

iShares Biotechnology ETF seeks to track the investment results of an index composed of U.S.-listed equities in the biotechnology sector.

iShares Biotechnology ETF holds about 265 securities in its basket, with 6.3% exposure to Moderna. IBB has an AUM of $9.91 billion, with an expense ratio of 0.45%.

iShares Genomics Immunology and Healthcare ETF IDNA

iShares Genomics Immunology and Healthcare ETF seeks to track the investment results of an index composed of developed and emerging market companies that could benefit from the long-term growth and innovation in genomics, immunology and bioengineering.

iShares Genomics Immunology and Healthcare ETF holds about 49 securities in its basket, with 5% exposure to Moderna. IDNA has an AUM of $350 million. iShares Genomics Immunology and Healthcare ETF has an expense ratio of 0.47% (read: Take a Look at the Top-Performing Biotech ETFs YTD).

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Moderna, Inc. (MRNA): Free Stock Analysis Report
iShares Biotechnology ETF (IBB): ETF Research Reports
VanEck Biotech ETF (BBH): ETF Research Reports
iShares Genomics Immunology and Healthcare ETF (IDNA): ETF Research Reports
ETFMG Treatments, Testing and Advancements ETF (GERM): ETF Research Reports
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