Psychedelics, Clean Energy, and Biopharma Resurface
Psychedelics, clean energy, and biopharma ETFs were among the top performers last week.
Last week’s top performing ETFs included psychedelics ETFs, driven by news of new depression treatment, and clean energy ETFs, propelled by European investments and biopharma ETFs over the report of a looming endemic.
Psychedelics Stocks Bounced Back
The Biden administration announced a funding opportunity for the State Opioid Response Grant Program. The program plays a crucial role in the fight against drug overdose by providing funding for states to assist with the prevention, treatment, and recovery support services for Opioid Use Disorder. On the other side of the border, the Mindspace by Numinus clinic received May 5th Health Canada’s approval to become the first facility in Quebec to treat depression with psilocybin legally. The clinic will provide care for patients that have previously been unsuccessful in treating depression. The positive news sent psychedelic stocks soaring and outperforming the broader market, which has been slumping for the seventh consecutive week. The Horizons Psychedelic Stock Index ETF (PSYK) was crowned the top performing ETF in Canada, rising 11.93% last week.
ETFs in play:
Lithium and Clean Energy ETFs Surge Following Recent Developments
Lithium surged over the news of a Chinese – Australian battle for control rights of the Manono lithium project in the Democratic Republic of Congo. Australian AVZ’s interest in the project could fall from 75% to 36%, as reported by Boatman Capital. Meanwhile, as Chinese and Australian investors fight over the world’s largest untapped lithium deposit, the EU presented its REPowerEU plan. This move by the EU attempts to increase the resilience of the European energy system as it phases out its dependency on Russian fossil fuels. The emerging news in Europe and Africa sent ETFs tracking lithium and clean energy skyrocketing. The Horizons Global Lithium Producers Index ETF (HLIT) came in as the second top performing ETF in Canada, having jumped 9.53% last week. Similarly, the iShares Global Clean Energy Index ETF (XCLN), the BMO Clean Energy Index ETF (ZCLN), and the Harvest Clean Energy ETF (HCLN) placed third, fourth, and fifth, having risen 6.66%, 6.50%, and 6.40% respectively.
ETFs in play:
Fears of a Looming Endemic Boost Vaccine and Biotech Stocks
Last Wednesday, the World Health Organization said that it is monitoring the Monkeypox outbreak, which is rapidly evolving. The disease, caused by the Monkeypox virus, a close relative to smallpox, brings out skin lesions and flu-like symptoms. Medical experts are worried that it is spreading into communities undetected. According to the Centers for Disease Control and Prevention, there is currently no available treatment to cure the infection. However, there is some evidence to suggest that the smallpox vaccine could help mitigate symptoms. Vaccine makers and biopharma shares rose on the news of the outbreak boosting the returns of ETFs tracking the sector. The Horizons Global Vaccines and Infectious Diseases Index ETF (HVAX), the only ETF under the Tomorrow’s Treatments, generated 4.39%.
ETFs in play:
Data for this article is as of May 20th, 2022.
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