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Moderna ETFs to Shine Bright on Booster Update, New Study Data

Investors have dual reasons to be upbeat about the Moderna MRNA stock. To begin with, the FDA has finally given a nod to the COVID-19 vaccine booster shots of Pfizer PFE-BioNTech or Moderna for people with weak immune systems. The decision has come at a time when the United States is seeing a sharp rise in the new coronavirus cases, arising from the highly-contagious delta variant even among the fully-vaccinated people.

In this regard, FDA Commissioner Dr. Janet Woodcock has said that “Today’s action allows doctors to boost immunity in certain immunocompromised individuals who need extra protection from COVID-19,” per a CNBC article. Patients suffering from cancer, HIV or those who have had organ transplants are mostly found to be immunocompromised individuals. Data suggests that these people don’t produce an adequate immune response despite being fully-vaccinated, per a CNBC article.

Notably, for the third shots to be administered on an immediate basis, the Centers for Disease Control and Prevention’s nod will be needed. The vaccine advisory committee will hold a meeting on Aug 13 to consider whether to issue a recommendation for shots for immunocompromised Americans, per the verified sources.

It is worth pointing out here that Israel has informed about its plans to administer booster shots to the population above 60 years, per a CNBC article. According to the same article, France has already started providing third shots to cancer patients or patients with other immune impairments.

In another positive development, Moderna informed about recently published new data on the durability of its COVID-19 vaccine in generating neutralizing antibodies against variants of concern like Alpha, Beta, Gamma, Delta, Epsilon and Iota. According to the company, the manuscript was published in Science. The data shows that majority of people that received both the shots of the Moderna’s COVID-19 vaccine maintained both binding and functional antibodies against SARS-CoV-2 variants for six months after the second dose.

Moderna ETFs to Gain

Considering the important role played by the coronavirus vaccines in Moderna’s recent earnings results, the latest developments can be positive for the stock. Notably, Moderna delivered 302 million doses of mRNA-1273, including 199 million doses in the second quarter, across the globe during the first half of 2021. The company expects to manufacture 800 million to 1 billion doses in 2021. It also projects to produce between 2 billion and 3 billion doses in 2022.

Interestingly, Moderna reported revenues of $4.4 billion in the second quarter, up from $67 million in the year-ago quarter. 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 Biomedical Advanced Research and Development Authority (“BARDA”) related to development of the COVID-19 vaccine also drove revenues.

Therefore, we discuss a few ETFs that provide exposure to Moderna:

ETFMG Treatments Testing and Advancements ETF GERM

This fund is designed to give direct exposure to biotech companies, directly engaged in the testing and treatment of infectious diseases. It holds 77 stocks in its basket, with Moderna occupying the top spot at 10.77% share. The fund has amassed $67.5 million in its asset base and charges 68 basis points (bps) in annual fees (read: Are COVID-Themed ETFs Back in Focus as Delta Variant Fears Rise?).

VanEck Vectors Biotech ETF BBH

The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 24 securities in its basket, with 9.85% exposure to Moderna. Its AUM is $619.3 million and it has an expense ratio of 0.35% (read: How Are Biotech ETFs Reacting to These Q2 Earnings Releases?).

iShares Biotechnology ETF IBB

This fund seeks to track the investment results of an index composed of U.S.-listed equities in the biotechnology sector. It holds about 270 securities in its basket, with 9.82% exposure to Moderna. IBB has AUM of $11.44 billion, with an expense ratio of 0.45% (read: ETF Investing Areas to Consider for August).

iShares Genomics Immunology and Healthcare ETF IDNA

The fund 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. It holds about 48 securities in its basket, with 6.88% exposure to Moderna. IDNA has AUM of $342.2 million, with an expense ratio of 0.47% (read: A Comprehensive Guide to Genomic ETFs).

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

Pfizer Inc. (PFE) : Free Stock Analysis Report

Moderna, Inc. (MRNA) : Free Stock Analysis Report

iShares Biotechnology ETF (IBB): ETF Research Reports

VanEck Vectors 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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