3 ETFs For More Moderna Bets

3 ETFs For More Moderna Bets

Shares of biotechnology company Moderna Inc (MRNA) jumped 20% Monday on news that its mRNA-1273 coronavirus vaccine candidate is making positive progress.

Those headlines prompted some analysts to say Moderna could be the first to market with a credible vaccine for the sometimes-fatal respiratory illness, and with those comments came at least a trio of bullish price target revisions into triple-digit territory.

For all the ebullience surrounding Moderna this year — and there's been plenty as highlighted by a 2020 climb of 309% — the stock isn't often mentioned in relation to exchange traded funds.

A few ETFs have robust Moderna holdings. The stock closed at $80 Monday, and with some price targets residing in the $100 to $105 area, there could be more upside ahead, meaning the following ETFs could be worth considering.

Loncar Cancer Immunotherapy ETF (CNCR)

Sixty-two ETFs have some exposure to Moderna, but the average weight to the stock among those funds is just 1.6% — barely enough to move the needle. The Loncar Cancer Immunotherapy ETF CNCR is one of just two of those funds to have a double-digit Moderna weight, and that proved meaningful Monday when the ETF jumped more than 5% on volume that was more than double the daily average on its way to another all-time high.

What makes CNCR interesting and important is that the fund isn't designed to be a coronavirus play. That's meaningful because investors need to evaluate the credibility of some biotechnology ETFs in preparation of a world where COVID-19 isn't the issue of the day.

“The Cancer Immunotherapy ETF offers exposure to a basket of companies that develop therapies to treat cancer by harnessing the body's own immune system,” according to the issuer. “Immunotherapy is a transformational field within the biotechnology space that may have a foundational impact on cancer care.”

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