Additionally, mRNA vaccines have snagged potent immunity against infectious disease targets in animal models of influenza virus, Zika virus, rabies virus and others.
While broader biotech ETFs like IBB and XBI may benefit from these breakthrough therapies, more concentrated plays like the recently launched Direxion mRNA ETF (MSGR) and the ETFMG Treatments, Testing and Advancements ETF (GERM) may offer another route to participate in the potential upside.
Another fund worth mentioning is the ALPS Medical Breakthroughs ETF (SBIO). Because the fund’s holdings are focused on smaller biotech companies with a market capitalization of less than $5 billion, it’s prone to periodic pops from M&A activity within the space.
Summary
As we head into 2022, keep biotech ETFs on your radar. Although their recent performance has been lackluster, a rebound could be ahead.
In the end, innovation along with consumer demand could lift the group to its former glory.