On August 19, Moderna and Merck announced that their personalized mRNA cancer vaccine combined with Keytruda met the interim analysis goals in a Phase 3 trial for melanoma. This marks the world's first personalized mRNA cancer vaccine to demonstrate efficacy in late-stage trials, and it represents the first time since COVID-19 that the market has repriced this technology based on large-scale clinical results.
Following the announcement, Moderna (MRNA.US) surged 177%, while Merck (MRK.US) climbed 13%. Among peers, BioNTech (BNTX.US) rose 22%, reflecting a sector-wide revaluation. Sequencing and mRNA raw material-related companies including Twist Bioscience (TWST.US), Maravai LifeSciences (MRVI.US), and Tempus AI (TEM.US) also gained over 20%.
While this proves the sector can be revalued, it does not change the investment approach: pharmaceuticals suit long-term allocation, diversification beats chasing headlines, and patience outweighs predicting when the next breakthrough will occur.
Where to begin
The E Fund (HK) Solactive Biotech Select Index ETF primarily tracks the Solactive Biotech Select Index. As of August 20, 2026, E Fund Biotech ETF (03186) is the only biotech-themed ETF listed on the Hong Kong Stock Exchange that simultaneously allocates to both Hong Kong-listed and US-listed biotech components.
The ETF closely tracks the Solactive Biotech Select Index, which covers approximately 100 high-quality biotech companies listed in China and the US. The index uses equal-weight methodology, providing balanced allocation across constituents with high individual stock diversification, allowing it to capture innovation opportunities from a broader range of biotech enterprises.
As of August 19, 2026, the ETF's top ten Hong Kong-listed holdings include innovative drug leaders such as KEYMED BIO-B (02162), SKB BIO (06990), ZAI LAB (09688), InnoCare Pharma (09969), BeiGene (06160), Innovent Biologics (01801), Simeere Pharmaceutical (02096), Junshi Biosciences (01877), Hansoh Pharmaceutical (03692), and CSPC Pharmaceutical (01093), alongside RemeGen (09995), Hutchmed (00013), Sino Biopharmaceutical (01177), and 3SBio (01530).
On the US side, the top ten holdings include the star of this rally, Moderna (MRNA.US), as well as Revolution Medicines (RVMD.US), Alkermes (ALKS.US), TG Therapeutics (TGTX.US), Immunovant (IMVT.US), Protagonist Therapeutics (PTGX.US), Halozyme Therapeutics (HALO.US), Kymera Therapeutics (KYMR.US), argenx SE (ARGX.US), and Arrowhead Pharmaceuticals (ARWR.US).
The balanced allocation of these constituents enables the ETF to capture the overall recovery momentum of the pharmaceutical sector. Traditional Hong Kong tech investing often centers on internet platforms, but technological progress extends far beyond that single track. The success of this mRNA cancer vaccine trial once again demonstrates that medical innovation is itself a technological breakthrough, not merely a defensive sector.
Why diversification matters
The greatest advantage of investing in a biotech ETF is that even without deep familiarity with each company's drug technology and R&D progress, investors can still participate in the entire industry through diversified allocation and enjoy the dividends of technological advancement.