Direxion has launched the Direxion mRNA ETF designed to offer investors exposure to messenger RNA technology, the cutting-edge research area that served as the basis for most COVID-19 vaccines. The Direxion mRNA ETF (MSGR) tracks the BITA Messenger RNA Technology Index.
The BITA Messenger RNA Technology Index is the world’s first pure-play mRNA technology focused index, the firm writes. The index tracks the performance of a selection of companies that have pure thematic exposure to the development and commercialisation of mRNA technology-based applications such as vaccines, therapeutics and development of medicines.
While the technology has come to the spotlight recently given the success of mRNA vaccines in preventing COVID-19 infections, the potential of this technology goes far beyond, the firm says. Riding current mRNA successes, numerous mRNA startups, spread mainly across the US and Europe, have secured approximately USD4.6 billion in investment flows.
David Mazza, Managing Director, Head of Product at Direxion says: “MSGR captures companies specifically involved with mRNA technologies that are believed to be at the forefront of fighting the battle against COVID, while also highlighting mRNA’s application to other viruses and diseases, including HIV and Lyme disease.”
M&A activity within the sector is booming as the technology is drawing attention from large corporations looking to revamp their R&D and medicine development platforms. An example of this is the USD3.2 billion acquisition of Translate Bio by Sanofi in September this year, the firm writes.
Victor Gomez, CEO at BITA, says: “From vaccines to cancer treatment, the mRNA technology will have a far-reaching impact in healthcare over the next years, given its potential to transform how medicines are discovered, developed, and manufactured. We are very happy and proud to be supporting Direxion in the launch of this highly innovative pure-play thematic ETF, which leverages BITA’s deep thematic expertise”.