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Genomics ETF (GNOM) Hits New 52-Week High

Sanghamitra Saha

For investors looking for momentum, Global X Genomics & Biotechnology ETF (GNOM) is probably a suitable pick. The fund just hit a 52-week high — up roughly 66.4% from its 52-week low of $10.16/share.

Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

GNOM in Focus

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. It charges 68 bps in fees (see all Health Care ETFs here).

Why the Move?

Efforts in formulating a coronavirus vaccine are heating up. The World Health Organization has recognised some 10 prime candidates for potential vaccines as these have entered clinical trials. Plus, 114 candidate vaccines are in preclinical evaluation stage. Given the big push for coronavirus vaccine development, the ETF is in the sweet spot now.   

More Gains Ahead?

The fund also has a positive weighted alpha of 30.39, which gives cues of further rally.

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Global X Genomics Biotechnology ETF (GNOM): ETF Research Reports
 
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