Which biotech ETFs outperform a key biotech index?

The three top biotech ETFs outperformed a key biotech index and also the broader market over the past year. The biotech ETFs with the best one-year trailing total return are the First Trust NYSE Arca Biotechnology Index Fund, the Invesco Dynamic Biotechnology & Genome ETF, and the VanEck Biotech ETF.

Which biotech stocks make up the iShares Nasdaq Biotechnology ETF?

For example, shares of biopharmaceutical company Amgen Inc. make up (as of this writing) 9.55% of the iShares Nasdaq Biotechnology ETF — the largest holding in the fund, which tracks an index of biotech and pharmaceutical companies listed on the Nasdaq.

Which S&P biotech ETF is the cheapest?

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. The passive management of the fund means it’s the cheapest of the funds on our list.

Should you invest in biotech exchange-traded funds?

This is where biotech exchange-traded funds, or ETFs, can play a pivotal role. Rather than putting all their eggs in one potentially volatile biotech stock, investors can instead spread their risk across a diversified basket of biotech companies via an ETF.