Biotech ETFs rally in Q4 fueled by 70%+ surge in Moderna
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Exchange traded funds tied to biotech sector gained momentum during Q4, led by a larger-than-70% surge in vaccine maker Moderna's (NASDAQ:MRNA) share price since early October.
Bolstered by the recent release of strong clinical data and some favorable regulatory decisions, MRNA has climbed almost 74% since Oct. 3. This has given a lift to ETFs that are heavily invested in the stock.
MRNA is owned by 242 ETFs. It forms a major part of ETFMG Treatments Testing and Advancements ETF (GERM), with a portfolio weight of 5.88%, per ETF.com.
Other ETFs with high concentration of MRNA include: Direxion mRNA ETF (MSGR), with a 5.73% weighting, VanEck Biotech ETF (BBH) with a 5.53% weighting, Invesco Nasdaq Biotechnology ETF (IBBQ) with a 4.89% weighting and ProShares Nanotechnology ETF (TINY) with a 4.84% weighting.
ETFs action since the start of Q4: GERM +7.6%, MSGR +9.6%, BBH +14.5%, IBBQ +11.8% and TINY +9.7%.
The advance in MRNA stock was fueled by series of events:

mRNA cancer vaccine mRNA-4157/V940, in combination with Keytruda, achieved main goal of a phase 2b study in certain patients with melanoma, a type of skin cancer.
European Medicines Agency, or EMA, endorsed the use of its BA.1 targeting bivalent vaccine mRNA-1273.214 as a booster shot in children aged 6 â 11 years.
Booster shots cleared in the U.S. for children as young as six months.
mRNA-based COVID-19 vaccine DS-5670 met the main goal in a booster vaccination trial.
Moderna's Omicron BA.4-5 targeting booster shot gets approval in Japan.

Moderna has also outperformed the broader market index during Q4: 
Earlier on Thursday, the vaccine maker finalized 10-year agreement with UK government for mRNA research, development and manufacturing facility.
For more on MRNA and Keytruda combo, see why Seeking Alpha contributor Juxtaposed Ideas says, "We reckon the former has a similarly bright prospect through the next decade, aided by the flu and RSV vaccines."