Thanks to exchange-traded funds (ETFs), investors don’t have to be tied to one specific stock. When it comes to biotech ETFs, they give sector participants exposure to many biotech companies via one vehicle.
ETFs are a popular choice as they allow investors to enter the market more safely compared to investing in standalone stocks. A key advantage is that even if one company in the ETF takes a hit, the impact will be less direct.
All other figures were also current as of that date. Read on to learn more about these investment vehicles.
AUM: US$94.91 million
The Global X Genomics & Biotechnology ETF tracks genomic science stocks, such as companies focused on gene editing, genomic sequencing, genetic medicine and therapy, computational genomics and biotechnology. This fund was first introduced to the market in April 2019 and invests at least 75 percent of its assets in mid- and small-cap companies.
AUM: US$92.18 million
AUM: US$67.12 million
AUM: US$28.73 million
The Principal Healthcare Innovators ETF tracks US-listed healthcare stocks with a focus on companies that are researching and developing innovative medicines and therapies. This fund was first introduced to the market in August 2016 and invests in businesses with high liquidity, avoiding large-cap stocks.
AUM: US$25.42 million
The Tema Oncology ETF provides exposure to biotech companies operating in the oncology industry. It includes companies developing a range of cancer treatments, including CAR-T cell therapies and bispecific antibodies.
This is an updated version of an article originally published by the Investing News Network in 2015.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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