There was plenty of other good news for Sangamo this year as well. The biotech received orphan-drug and fast-track designations for several of its pipeline candidates. The first patients received treatment in a couple of phase 1/2 clinical studies evaluating gene therapies SB225 and SB913. Probably the only factor holding Sangamo stock back somewhat was the company’s public stock offering, which generated gross proceeds of $83.4 million. The company announced on Aug. 25 that it was licensing anti-IL-1 beta antibody gevokizumab to Novartis.
The table shows the returns of all biotech ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.
We believe everyone should be able to make financial decisions with confidence. ETF issuers are ranked based on their estimated revenue from their ETFs with exposure to Biotechnology. Estimated revenue for an ETF issuer is calculated by aggregating the estimated revenue of the respective issuer ETFs with exposure to Biotechnology. To get the estimated issuer revenue from a single Biotechnology ETF, the AUM is multiplied by the ETF’s expense ratio.
If an ETF changes its industry classification, it will also be reflected in the investment metric calculations. In June, the FDA granted orphan-drug designation to deriv.com forex broker review ganaxolone as a treatment for CDKL5 Disorder, a rare genetic type of epilepsy. Marinus announced top-line data from its phase 2 study of the drug in September.
Jazz primarily focuses on treatments for sleeping disorders and oncology. TECH has seen strong performance over the past decade, outperforming the S&P 500 as of September 3 by an average of 3.3 percentage points per year over that period. However, the stock has been tranding sideways in 2023, with the price currently in the middle of its 10-year range. Next year’s EPS is expected to rise 18.9% on sales growth of 12.2%. Analysts expect average earning increases of 11.3% per year over the next five years. While over the past five years, earnings have already increased an average of 16.3% per year.
- The Motley Fool owns shares of and recommends Alnylam Pharmaceuticals, Celgene, and Gilead Sciences.
- These companies have growing revenue and strong forward growth expectations.
- Knowing when to buy is one of the hardest parts of investing.
- However, BBH is largely focused on mature biotech companies that offer up many different types of treatments.
The three top ETFs in this group have fallen less than the 16% drop in the Nasdaq Biotechnology Index and also less than the 19% decline in the S&P 500 Index in the last year as of Nov. 9. Once you’re set with a brokerage account, determine if there are specific companies you’d like to invest in, whether that’s smaller, high-growth biotechs or larger, more established health care and pharmaceutical companies. This research will help you decide what your risk tolerance is and will point you in the right direction when you start looking at different ETFs. When researching biotech ETFs, you can get a sense of their risk level by looking at their top 10 holdings, focusing primarily on those that are most heavily weighted.
Click on an ETF ticker or name to go to its detail page, for in-depth news, financial data and graphs. By default the list is ordered by descending total market capitalization. Note that ETFs are usually tagged by ETF Database analysts as more than one type; for example, an inverse gold ETF may be tagged as “inverse” and as “gold” and as “commodity”.
As of October 3, Jazz has the lowest forward P/E on this list, making it an attractive value play if the company can generate the earnings expected. The stock declined in the first half of 2023, but it is bouncing back strongly in the second half. 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. It has two of its own drugs on the market, along with two others under partnerships.
First Trust NYSE Arca Biotechnology Index Fund
The number of holdings in the SPDR S&P Biotech ETF currently stands at 102. While the iShares Nasdaq Biotechnology gives greater weight to biotechs with larger market caps, the SPDR S&P Biotech ETF maintains more equalized weights for all stocks. As a result, the ETF’s top holding, BioMarin Pharmaceutical, makes up only 1.72% of total assets held. Looking at an ETF’s holdings and their corresponding weights can help you determine if it’s the right fund for you.
Over the past five years, the ETF has generated an average annual return of 18.71%. Here’s what makes these ETFs ones to consider for review laughing at wall street investors looking to profit from the biotech industry. Right now, the biotech sector is in the early stages of a significant rally.
How to invest in biotech using ETFs
From there, investors can seek and find the ETFs, and also review specific attributes, such as performance, holdings, yield, and risk. The Ark Genomic Revolution ETF (ARKG 0.4%) bdswiss forex broker review is one of several exchange-traded funds operated by Cathie Wood’s Ark Invest. The fund invests in the stocks of companies that incorporate genomics into their businesses.
Main Management Market Note: October 13, 2023
While some larger companies have set themselves up for future growth and diversification, 2023 may be a flat earnings year for many large caps due to patent expirations and COVID-19 revenue declines. On the other hand, smaller-cap biotechs, though recovering from mid-year lows, have underperformed compared to larger and mid-cap biotechs and pharma. However, some high-quality, catalyst-driven smaller-cap companies are forecasted to perform well in 2023, driven by increasing regulatory permissiveness and potential M&A activity. M&A activity is also expected to rise as large biopharma companies sit on strong balance sheets, face patent cliffs, and experience better policy clarity. This potential uptick in M&A could act as a catalyst for biotech stocks, driving growth and diversification among larger-cap companies facing challenges. The fund invests in primarily growth stocks of various market capitalizations.
The stock posted solid gains throughout most of 2017, but really took off in November. Nektar announced positive clinical results in November for two pipeline candidates — mu-opioid receptor agonist NKTR-181 and cancer drug NKTR-214. Alnylam’s share price had more than doubled by August, but the really big news for the biotech came in September. 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.
iShares Biotechnology ETF
This page provides links to various analysis for all Biotechnology ETFs that are listed on U.S. exchanges and tracked by ETF Database. The links in the table below will guide you to various analytical resources for the relevant ETF, including an X-ray of holdings, official fund fact sheet, or objective analyst report. The table below includes fund flow data for all U.S. listed Biotechnology ETFs. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period. Investors can research and analyze biotech ETFs with an ETF screener. To use the Seeking Alpha ETF screener to find biotech ETFs, an investor can select the “Sector Equity” asset class, then select the “Health” sub-class.
Biotech ETFs have all the characteristics of ETFs in general. The key difference is that these ETFs hold only the stocks of companies that focus on biotechnology. The award for best-performing biotech stock of all in 2017 goes to Marinus Pharmaceuticals.