Will Pfizer ETFs Gain on Positive COVID-19 Booster Dose Data?

Pfizer Inc. PFE and BioNTech SE BNTX recently announced encouraging data from a Phase 3 randomized, controlled trial studying the efficiency and safety levels of a 30-µg booster dose of their COVID-19 vaccine. The trial included more than 10,000 participants of age 16 years or above. Compared to the participants who were not administered the booster shot, the data reflected relative vaccine efficiency of 95.6% against COVID-19.

In the trial, the 30-µg booster dose, which is the same dosage level as those in the primary series or placebo, was given to participants who had completed the initial two-dose schedule of the Pfizer-BioNTech vaccine and were randomized 1:1 for administering the vaccine. According to the company, roughly 11 months was the median time between the second dose and the booster dose or placebo administration.

It is worth noting that the Pfizer/ BioNTech booster shot has already been authorized for people aged 65 years and above. The booster dose has also been approved to administer to individuals between 18 and 64 years of age and are at high risk of severe COVID-19.

The FDA has also authorized the booster shot for people in the 18-64 years age group whose frequent institutional or occupational exposure to SARS-CoV-2 raises the risk of severe COVID-19 complications.

According to the company, the booster shot can be provided at least six months post-completion of the primary series. Notably, the booster vaccine is the same formulation, composition and dosage power as the doses in the primary series. Notably, the approval was awarded on carefully evaluating the scientific evidence and clinical program data shared by the companies and reviewed by the FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC).

Now, to combat the coronavirus outbreak and accelerate the distribution process of extra doses in the United States, the Centers for Disease Control and Prevention and its vaccine advisory committee and the FDA approved the vaccine booster shots produced by Moderna (MRNA) and Johnson & Johnson (JNJ).

As mentioned in a CNBC article, the regulators have also permitted “mixing and matching” vaccines. This will enable Americans to opt for a booster shot from a different developer than those that came up with the initial doses.

ETFs to Shine Bright

The nod for booster shots can likely enhance the confidence toward jabs, resulting in more people opting for the vaccination. This update is going to accelerate demand for coronavirus vaccines and boost the company’s financials.

Thus, let’s take a look at ETFs with high exposure to Pfizer that can gain from the recent development:

iShares U.S. Pharmaceuticals ETF IHE

The fund provides exposure to U.S. companies that manufacture prescription or over-the-counter drugs or vaccines. It holds 47 stocks in its basket, with Pfizer making up for a 18.8% share. The product has AUM of about $382.1 million. The fund charges 42 basis points (bps) in fees and expenses (read: JNJ Posts Mixed Q3 Bag, Ups View: ETFs in Focus).

First Trust Morningstar Dividend Leaders Index Fund FDL

This ETF replicates as closely as possible, before fees and expenses, the price and yield of the Morningstar Dividend Leaders Index and holds 100 stocks in its basket. Pfizer holds 5.5% weight in the fund. The product has amassed $1.67 billion in its asset base. Expense ratio is 0.45%.

iShares Evolved U.S. Innovative Healthcare ETF IEIH

This fund employs data science techniques to identify companies with exposure to the innovative healthcare sector and holds 249 stocks in its basket, with Pfizer making up for a 6.5% share. The product has AUM of about $41.9 million. The fund charges 18 bps in fees and expenses (read: Take a Look at the Top-Performing Biotech ETFs YTD).

Invesco Dynamic Pharmaceuticals ETF PJP

This fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the Dynamic Pharmaceutical Intellidex Index and holds 23 stocks in its basket, with Pfizer making up for a 5.5% share. The product has AUM of about $428.9 million. The fund charges total expense ratio of 58 bps in fees and expenses (read: ETFs to Play as Merck Shares Surge on COVID Treatment News).

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Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Invesco Dynamic Pharmaceuticals ETF (PJP): ETF Research Reports
 
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
 
First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
 
iShares Evolved U.S. Innovative Healthcare ETF (IEIH): ETF Research Reports
 
BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report
 
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