Red Hot ETF Areas Amid The Coronavirus Crisis

The rapidly spreading coronavirus outbreak seems to have unnerved market participants in July as the total number of cases have crossed 4.4 million with at least 150,000 deaths, per a CNN report. Also, the U.S. economy’s second-quarter GDP’s most devastating plunge of 32.9% on an annualized basis, according to the Commerce Department’s first reading of the data, dented investors’ optimism (per a CNBC article).

Moreover, the rising number of coronavirus cases in the United States hurt consumer confidence in July as consumers become worried about the job prospects and business conditions across the nation. The Conference Board's measure of consumer sentiment index stands at 92.6, comparing unfavorably with June’s reading of 98.3.

Investors are fearing that another round of business restrictions and lockdown measures might derail the economic recovery achieved so far. Meanwhile, looking at the aggravating pandemic situation in states like California, Texas, Florida and Oregon along with others, it is no wonder that the reopening process might take a beating. Also, raising concerns, some states are now short of hospital beds while testing labs are flooded with samples.                

Against this backdrop, let’s look at some ETF areas that will continue to be strong investing options:

Biotech ETFs

The race to introduce vaccine and treatment of coronavirus is breeding opportunities, making the biotech sector a prospective space for investments. From vaccine-related positive news to progress in the development of cell therapies for addressing coronavirus, all kept the sector surging.

Favorable updates on two vaccine candidates being made by Moderna (MRNA) and Pfizer (PFE) in collaboration with German biotech firm BioNTech came to the fore. These companies began the late-stage study on their coronavirus vaccines. Other vaccine developers that are being supported by the Operation Warp Speed are also nearing the late-stage trials. This includes an experimental vaccine being developed in collaboration with the University of Oxford and AstraZeneca (AZN), a vaccine candidate from Johnson & Johnson (JNJ) and another one from the biotechnology company Novavax (NVAX), per a Washington Post article.

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