For the first time in 18 years, there was a new treatment for Alzheimer’s Disease approved by the FDA.
Aducanumab from Biogen Inc BIIB was approved as a drug that can reduce the clinical decline of dementia. The FDA concluded using Aduhelm (the marketing name of Aducanumab) for Alzheimer’s patients outweighs the risk of therapy.
The result saw Biogen shares halted for hours Monday before reopening for trade at $449, significantly above the 52-week high of $363.92. Investors sent shares of ETFs with Biogen up higher prior to shares of Biogen resuming trade.
Here is a look at five ETFs with large exposure to Biogen shares (data as of June 4 from ETFdb.com and the company’s websites).
Invesco Dynamic Biotechnology & Genome ETF PBE: +5.1%
The Invesco Dynamic Biotechnology & Genome ETF follows the Dynamic Biotech & Genome index, investing at least 90% of assets in securities found in the index. The index includes 30 companies in the sector. The ETF rebalances quarterly in February, May, August and November.
Biogen is the second largest weighted stock in the PBE ETF at 5.23% of assets. Eight of the 31 holdings in the ETF have a weighting of 4.8% or more including Illumina Inc ILMN, Gilead Sciences GILD, Bio-Techne TECH, Alexion Pharmaceuticals ALXN, Amgen Inc AMGN, Catalent Inc CTLT and Qiagen QGEN.
VanEck Vectors Biotech ETF: BBH: +4.6%
The VanEck Vectors Biotech ETF follows the MVIS Us Listed Biotech 25 Index, which tracks the performance of companies involved in genetic analysis and diagnostics equipment.
Biogen is the eighth largest holding in the ETF at 4.8% of assets. The ETF’s top holdings are Amgen, Moderna Inc MRNA and BioNTech BNTX at 9%, 7.2% and 5.8% of assets respectively.
Related Link: Where Biogen Stands With Analysts
Invesco BuyBack Achievers ETF PKW: +2%
Along with several biotechnology sector ETFs, the Invesco BuyBack Achievers ETF was up on news from Biogen’s approval. The ETF, which has 109 holdings, is based on the Nasdaq US BuyBack Achievers Index. The Index tracks companies that have a net reduction in shares outstanding of 5% or more over the last trailing twelve months. The ETF is rebalanced quarterly in January, April, July and October.
Biogen is the fifth largest holding in the ETF at 3.5% of assets and the top held health care stock in the fund. Top holdings in the ETF include Oracle Corp ORCL, Charter Communications CHTR, eBay Inc EBAY and Allstate Corp ALL.
First Trust NYSE Arca Biotechnology Index Fund FBT: +4.3%
The First Trust NYSE Arca Biotechnology Index Fund tracks an index of 30 holdings that cover several areas of the sector. The ETF has 30 holdings and due to the equal weighting the top 10 holdings represent 3.5% to 4.0% of assets.
Biogen is the eighth largest holdings at 3.5% of assets. The fund rebalances in January, April, July and October to get components to equal weighting.
iShares Nasdaq Biotechnology ETF IBB: +4.4%
With $10.1 billion assets under management, the iShares Nasdaq Biotechnology ETF is one of the largest in the sector and could have a great impact from the Biogen news. The ETF has 277 holdings and tracks an index that covers companies listed on the Nasdaq in both the biotechnology and pharmaceutical fields.
Biogen represents 3.5% of assets and is the seventh largest holding. Top holdings in the ETF are Amgen, Gilead and Moderna at weightings of 8.7%, 7.1% and 6.9%, respectively.
Price Action: Shares of Biogen are up 42% to $405 at the time of writing.
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