Invest in Biotechnology with Biotech ETFs
List of Biotechnology ETFs
We are definitely in the age of technological advancement. Every day new technology is being introduced at a rapid pace. And this does not only include gadgets and gizmos, but biotechnology as well. The more we learn about technology and engineering the more we can apply it to both material items as well as human biology.
Whether you agree or not, is your right as an investor. And as an investor you can take your opinion and turn it into an investing opportunity. Do you think the biotechnology is up-and-coming sector or maybe you are more bearish and think the advancements are overrated? Either way, you can take advantage by selling or buying a biotechnology industry ETF.
You can also utilize biotechnology ETFs in your investing strategy to diversify a portfolio or hedge any biotechnology risk you may have with other investments.
There are other ways to invest in the biotechnology sector besides ETFs. Like trying to select specific stocks involved with biotechnology. Or you can target a biotechnology index, but that could involve a lot of transactions and price-chasing in order to gain exposure to the biotechnology industry as a whole.
However, if you are looking to target the sector, then I recommend the simpler way by utilizing biotech ETFs in your investment strategy. With one transaction, you can gain exposure to the industry via a mini-portfolio focusing on biotechnology equities.
And not only do you get instant exposure to the sector, but you get many of the other advantages that come with trading ETFs as well - especially the tax benefits. And ETFs can also help you save money. So if this is all sounds like a plan to you, then it may be time to consider some of these biotechnology funds…
BBH - Market Vectors Biotech ETF
BBH targets eighteen companies involved in the biotech sector. Some of the top holdings include Amgen Inc (AMGN), Gilead Sciences (GILD), and Biogen (BIIB)
BIB - Ultra NASDAQ Biotechnology ETF
This fund tracks the NASDAQ Biotechnology Index and seeks a 2x leveraged daily return on the underlying index. Some of the top holdings include Pharmasset, Amgen, and Alexion Pharmaceutical.
BIS - UltraShort NASDAQ Biotechnology ETF
Like BIB, this fund also targets the NASDAQ Biotechnology Index and it also seeks a 2x leveraged daily return. However, BIS seeks and inverse return as well. As the underlying index goes down, the value of BIS goes up. Learn more about BIS
FBT - First Trust NYSE Arca Biotech Index ETF
This ETF tracks the NYSE Arca Biotechnology Index and some of the top holdings include Biogen (BIIB), Qiagen (QGEN), and Illumina (ILMN).
IBB - iShares Nasdaq Biotechnology ETF
Like BIB and BIS, this ETF also tracks the NASDAQ Biotechnology Index, but seeks a single direct correlation as opposed to the others, not a leveraged or inverse return.
PBE - PowerShares Dynamic Biotech & Genome ETF
This ETF tracks the Dynamic Biotechnology & Genome Intellidex Index and some of the top holdings include Biogen, Alexion, and Gilead Sciences.
XBI - SPDR S&P Biotech ETF
This SPDR tracks the S&P Biotechnology Select Industry Index and some of the top holdings include Pharmasset, Spectrum Pharmaceuticals, and Biogen
New Biotech ETFs
- BBC - BioShares Biotechnology Clinical Trials Fund
- BBP - BioShares Biotechnology Products Fund
- LABS - Direxion Daily S & P Biotech Bear 1X Shares ETF
- LABD - Direxion Daily S&P Biotech Bear 3X Shares ETF
- LABU - Direxion Daily S&P Biotech Bull 3X Shares ETF
- UBIO - UltraPro Nasdaq Biotechnology ETF
- ZBIO - UltraPro Short Nasdaq Biotechnology ETF
Make sure to check this list often as I will update it when new biotech funds are launched or if any are delisted. Also, before making any trades, make sure to conduct your due diligence and research every ETF. Always be aware of the ins and outs of each fund and watch how they react to different market conditions. If you have any questions, don’t hesitate to consult your broker or a certified financial professional. Every trade has risk, make sure you are well aware of yours.
Disclaimer: At the time of publication of this ETF list of Biotechnolgy ETFs, I do not have any open positions in the above exchange trafed funds and notes - Mark Kennedy