Thanks to exchange-traded funds (ETFs), investors aren’t tied to a single specific stock. Biotech ETFs allow market participants to gain exposure to multiple biotech companies through a single investment vehicle
.
Advantages of ETFs in the Biotech Sector
The life sciences sector can certainly be risky, and ETFs are a good way to enter more securely than investments in individual stocks. A key benefit is that even if a company in the ETF experiences a setback, the impact will be
less direct.
The Five Biotech ETFs to Watch
The Global X Genomics & Biotechnology ETF follows the actions of genomic science, such as companies focused on gene editing, genomic sequencing, gene medicine and therapy, computational genomics, and biotechnology. This fund was first launched on the market in April 2019 and invests at least 75 percent of its assets in medium and small companies
.
The ProShares Ultra NASDAQ Biotechnology ETF was launched in April 2010 and is related to the large NASDAQ Biotechnology Index, which currently tracks 220 stocks. This fund is ideal “for investors with short-term bullish optimism for biotech or pharmaceutical companies
.”
The Cardiovascular and Metabolic ETF Theme follows biotech actions with a focus on diabetes, obesity and cardiovascular disease. More than three-quarters of its shares are based in the United States
.
- Major Healthcare Innovators ETF (NASDAQ:BTEC)
The Principal Healthcare Innovators ETF tracks publicly traded healthcare stocks in the United States with a focus on companies that are seeking and developing innovative medicines and therapies.
The Range Cancer Therapeutics ETF offers exposure to biotech companies focused on a wide range of cancer therapeutic modalities. Its large portfolio of investments includes companies across nearly the entire lifecycle of cancer drug development and distribution
.
ETFs in the biotech sector offer investors an efficient way to gain exposure to different biotech companies in a single investment solution. With reduced risk compared to investments in individual stocks, these funds are an attractive option for those seeking diversification in the life sciences sector
.
