Pacer BioThreat Strategy ETF Hits a New 52-Week High

Hassan Maishera

Tue, Nov 30, 2021, 8:09 PM 2 min read

The Omicron Covid variant was discovered last week, and it has sent a shock through the global financial markets. As a result, investors are seeking exposure to assets related to biological threats.

VIRS Rally Following Omicron’s Discovery

The Pacer BioThreat Strategy ETF (VIRS) is currently one of the best-performing ETFs in the market. The fund is designed to track the performance of the underlying LifeSci BioThreat Strategy Index.

This index comprises stocks of US publicly-listed companies whose products and services are designed to help protect against, endure, or recover from biological threats to human health. VIRS has performed excellently over the past few days, and it touched a new all-time high above $35 a few hours ago.

The fund is managed by Pacer and has more than $8 million in assets under management. VIRS has a diversified portfolio as the fund invests in stocks such as Nvidia (NVDA), Netflix (NFLX), Thermo Fisher Scientific (TMO), Home Depot (HD) and several others.

The stocks are diversified as the fund seeks to provide investors with exposure to companies that provide products and services during pandemics and other periods of biological threats. The VIRS ETF puts more than half of its assets in the Healthcare sector (54%). This is followed by consumer discretionary (13.7%) and information technology (10.4%).

VIRS Could Rally Higher

VIRS hit a new 52-week high due to a surge in demand for vaccines and treatment, which resulted in investors seeking exposure to healthcare stocks. As scientists are still working to further understand the Omicron variant, VIRS’s value could soar higher over the coming days.

VIRS’s MACD line is above the neutral zone, indicating bullish momentum. Meanwhile, an RSI of 63 shows that VIRS is heading into the overbought territory if it can maintain its current performance. VIRS is trading above its 50-day simple moving average of $32, which shows that the fund has set strong support around the $30 mark.

This article was originally posted on FX Empire