This page includes historical dividend information for all Biotechnology ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Note that certain ETPs may not make dividend payments, and as such some of the information below may not be meaningful. The following table includes ESG Scores and other descriptive information for all Biotechnology ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Easily browse and evaluate review when genius failed ETFs by visiting our ESG Investing themes section and find ETFs that map to various environmental, social, governance and morality themes. When choosing a biotech ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all biotech ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.
- The downside is that if a drug fails to receive approval that could cause the business—and its stock—to lose value.
- The company’s share price has had a turbulent ride in the last several years as well, trading at more than $15 in 2021 before dropping below $2.50 in late 2022.
- On Sept. 20, the company reported positive results from a late-stage study of RNAi drug patisiran in patients with hereditary ATTR amyloidosis with polyneuropathy.
Since then, the fund has generated an annualized total return of about 15%. Over the past five years, the ETF’s average annual return was close to 5.5%. Investing in an ETF comes with a cost beyond just the transaction charge that a brokerage might require. The expense ratio of an ETF is calculated by dividing the fund’s operating expenses by its average assets. Hundreds of biotech companies are hard at work developing innovative therapies. Some could even be game changers in preventing and treating diseases.
The Nasdaq Biotechnology Index rose from about 2,900 points in January 2017 to a high of almost 5,460 points in September 2021. Biotechnology has become of major importance during the pandemic, as many biotech firms have been responsible for the vaccines and therapies that will help reduce its impact. Other types of biotechnology businesses focus on solutions for major problems such as cancer or climate change.
Understanding biotech ETFs
Biotech ETFs work by buying shares in many companies in that sector. Investors can own shares in such ETFs to easily invest in a umarkets broker review: experience matters! diversified biotech portfolio. The smaller a fund is, the fewer investors will be looking to buy or sell shares at any one time.
Biotech exchange-traded funds let you invest in a basket of health care companies through a single investment. ETF issuers are ranked based on their AUM-weighted average 3-month return of their ETFs with exposure to Biotechnology. Biotechnology and all other industries are ranked based on their aggregate 3-month fund flows for all U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective industries. 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Biotechnology relative to other industries. If an ETF’s industry classification changes, it will affect the fund flow calculations.
- The price-to-earnings (P/E) ratio of 45.5 as of September 3 is a bit expensive.
- Alnylam Pharmaceuticals (ALNY 1.71%) stock more than tripled in 2017, while Nektar Therapeutics (NKTR 3.01%) stock soared more than 350%.
- The table below includes basic holdings data for all U.S. listed Biotechnology ETFs that are currently tagged by ETF Database.
- If an ETF’s industry classification changes, it will affect the dividend yield calculations.
Keith Speights owns shares of Celgene, Gilead Sciences, and SPDR S&P Biotech. The Motley Fool owns shares of and recommends Alnylam Pharmaceuticals, Celgene, and Gilead Sciences. The First Trust NYSE Arca Biotech ETF launched in June 2006, less than five months after bdswiss forex broker review the inception of the SPDR S&P Biotech ETF. The investment objective of the ETF is to replicate as closely as possible the investment results of the NYSE Arca Biotechnology Index. And there is one ETF that offers the best way to profit from the biotech sector today.
Even though the biggest social media companies are American, the fact is that most of the world’s population lives in Asia. Estimates from the United Nations show that the global population surpassed 8 billion in 2022, and out of this, 4.8 billion live in Asia. This makes Asia one of the most lucrative markets in the world, a fact that is evident in the economic interest shown by both Western businesses and the media in Asia. Asia also has three of the largest economies in the world, namely India, China, and Japan.
SPDR S&P Biotech ETF
S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. Biotechnology companies strive to develop breakthrough drugs that can radically improve medical care and human wellbeing. These highly volatile equities can see stomach-churning price swings, driven by how their treatments fare in FDA clinical trials and real-world applications. Thankfully, the company is making solid clinical progress that should still yield regulatory results.
It has five treatments in various stages of development and one drug on the market. That’s quite a drop in just one year, although it was expected. It could also kick-start a series of several more non-CF launches. Vertex plans to market five brand-new drugs in the next five years. The last two perfectly exemplify Vertex’s strategy of developing medicines for illnesses where none currently address the underlying causes.
Pacer Biothreat Strategy ETF (VIRS)
Our favorite biotech ETF has tripled the returns of the Dow since we first recommended it on Dec. 31, 2013. In that time, the exchange-traded fund (ETF) has gained 68.6% while the Dow has only gained 21.9%. Biotech ETFs are a good way for investors to get exposure to the exciting, if volatile, biotech industry. Biotech has become even more important in the age of the pandemic, and there’s significant potential for the industry to continue growing in the future. The biotech industry’s trading patterns are unstable and investors need to be prepared to commit to the sector for the long term.
The SPDR S&P Biotech ETF (XBI) is an index fund that aims to track the S&P Biotechnology Select Industry Index. This index is largely composed of biotech companies that work in health care and on developing medicines and therapeutics. We reviewed many funds in this area to come up with this list of the best five biotechnology exchange-traded funds (ETFs) to invest in. Presented in no particular order, we selected these funds based on their size, investment costs, history of returns, and their specific focuses within the world of biotechnology.
FBT doesn’t begin to outperform the biotech index until the 5 and 10-year returns, yet it fails to outperform the S&P 500 index during any of the time periods reviewed here. Companies in this broad-based sector can produce healthy returns. Since then, it has generated an average annual return of more than 5%.
ETF Analysis
The company began the year with a market cap of a little over $200 million and is on track to finish with a valuation topping $1.4 billion. While Acadia is a high-risk bet since it’s still burning through capital, the company looks well positioned to surprise to the upside in 2017. With shares down 37% from their all-time high, it’s a fine time to consider getting in. Looking ahead, 2017 promises to be a banner year for the company. If Nuplazid can ultimately snag a label expansion claim in one of these other disease states, then its peak sales could get big in a hurry.
From then until 2027, the sector is projected to grow at a compounded annual growth rate (CAGR) of 17.1% to be worth $434 billion by the end of the forecast period. Unsurprisingly, Asia Pacific was the largest market in 2022 and is expected to be the fastest growing moving forward. HALO has seen average EPS growth over the past five years of 24.0% per year, and analysts expect earnings to continue growing at an even stronger rate over the next five years. The company has a strong financial health rating from Morningstar and the highest one-year change in sales growth on this list. Picking the right biotech stocks means the difference between treading water and impressive outperformance.
The BBH ETF outperforms the broader biotech index, but is far behind the S&P 500 index, for the 1- and 3-year returns. BBH is closer to the index for the 5- and 10-year returns but still lags the S&P 500 for those longer periods. The continued legalization of marijuana means growth for companies in this sector. Its top holdings include Agios Pharmaceuticals (AGIO 0.65%), Seagen (SGEN -0.2%), BioMarin Pharmaceutical (BMRN -0.23%), Exelixis (EXEL 0.56%), and FibroGen (FGEN -4.05%).
