What are the best leveraged biotech ETFs?

Here, we look at two popular leveraged biotech ETFs: BIB and LABU. The biotech sector includes companies that specialize in cutting-edge biological science and medical devices. Given its potential to create lifesaving cures and ward off disease, biotech stocks have a lot of upside potential—but also come with a greater degree of risk of failure.

Should you invest in a biotech ETF?

Leveraged ETFs that track the biotech sector on multiple bases are a great way to get exposure to this sector without having to pick individual stocks—but the extra leverage also increases their riskiness. The ProShares Ultra Nasdaq Biotechnology ETF ( BIB) inception date was April 7, 2010.

How long should you hold a leveraged biotech ETF?

Although some leveraged biotech ETFs have fared well during the industry's bull run, this type of ETF should only be held for relatively short periods due to the time decay inherent in many leveraged products. Here, we look at two popular leveraged biotech ETFs: BIB and LABU.