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ETFs Riding the Latest Coronavirus Vaccine Optimism Wave

The total number of coronavirus cases has crossed the grim mark of 50 million. Notably, the world’s largest economy has seen more than 10 million cases alone. The worsening coronavirus crisis is therefore increasing desperation among investors over the introduction of a vaccine.

On Nov 9, Pfizer (PFE) and BioNTech announced the efficacy of their mRNA-based coronavirus vaccine candidate, BNT162b2. According to them, the vaccine was more than 90% successful in preventing COVID-19 in participants without prior evidence of SARS-CoV-2 infection. The results are based on the first interim efficacy analysis conducted on Nov 8, by an external, independent Data Monitoring Committee from the Phase 3 clinical study, per the company.

The news has instilled optimism in the market, with Pfizer climbing around 7.7% on the day. The Dow Jones Industrial Average also rose 2.95%, witnessing its biggest one-day gain since Jun 5. The 30-stock average also hit an all-time high in yesterday’s session, rising nearly 5.7%. The S&P 500 rose 1.2% and reached an intraday all-time high. The vaccine optimism also led to rally in some sectors, which have suffered the most due to the outbreak, particularly, airlines and travel, leisure and entertainment spaces.

Going on, Pfizer and BioNTech will keep gathering safety data and currently project that a median of two months of safety data following the second (and final) dose of the vaccine candidate matching the FDA guidance for potential Emergency Use Authorization (EUA) should be available by the third week of November. Meanwhile, the companies expect to manufacture up to 50 million vaccine doses globally in 2020 and up to 1.3 billion doses in 2021.

The Phase 3 clinical trial of BNT162b2 had started in late-July and has already enrolled 43,538 participants to date, 38,955 of whom have been administered a second dose of the vaccine candidate as of Nov 8, 2020, per the company.

Other Vaccine Developers Not Far Behind

Another prominent vaccine developer, Moderna (MRNA), is steadily moving toward releasing data from its large, late-stage trial in November, per the sources. Notably, Moderna also recently mentioned that it is actively preparing the launch of its coronavirus vaccine candidate.

Meanwhile, other front runners in vaccine development, AstraZeneca (AZN) working in collaboration with the Oxford University, and Johnson & Johnson (JNJ), have resumed their late-stage coronavirus vaccine trials in the United States. Notably, these companies paused trials after a trial participant showed some serious health issue which required a thorough review of their safety data.

ETFs Riding the Optimism Rally

Against this backdrop let’s look at some ETFs that have been gaining on the coronavirus vaccine optimism:

U.S. Global Jets ETF JETS — up 16.1% on Nov 9

The fund provides investors access to the global airline industry, including airline operators and manufacturers from all over the world. The fund has an expense ratio of 0.60% (read: Top ETF Stories of the Volatile October).

SPDR S&P Regional Banking ETF KRE — up 15.4 %

The fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Regional Banks Select Industry Index. It has an expense ratio of 0.35% (read: Why Bank ETFs Are Surging).

The Energy Select Sector SPDR Fund XLE — up 14.3 %

The fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Energy Select Sector Index. It has an expense ratio of 0.13% (read: Energy ETFs in Focus Post Exxon, Chevron Earnings).

Invesco Dynamic Leisure and Entertainment ETF PEJ — up 7%

The fund is based on the Dynamic Leisure & Entertainment Intellidex Index. It has an expense ratio of 0.63%

ProShares Ultra Dow30 DDM— up 6%

The fund seeks daily investment results, before fees and expenses, that correspond to two times the daily performance of the Dow Jones Industrial Average. It has an expense ratio of 0.95%

The Industrial Select Sector SPDR Fund XLI — up 3.4%

The fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Industrial Select Sector Index. It has an expense ratio of 0.13% (read: Global Manufacturing Improving: ETFs in Focus).

SPDR S&P 500 ETF Trust SPY — up 1.3%

This fund seeks to provide investment results that before expenses correspond generally to the price and the yield performance of the S&P 500 Index. Its total expense ratio, 0.09% (read: What's the 3rd Wave Going to Do to a U.S. Economic Recovery?).

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Energy Select Sector SPDR ETF (XLE): ETF Research Reports
 
Industrial Select Sector SPDR ETF (XLI): ETF Research Reports
 
SPDR SP 500 ETF (SPY): ETF Research Reports
 
U.S. Global Jets ETF (JETS): ETF Research Reports
 
Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports
 
Proshares Ultra Dow30 (DDM): ETF Research Reports
 
SPDR SP Regional Banking ETF (KRE): ETF Research Reports
 
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Zacks Investment Research
 
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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