What is a biotech ETF?

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 best biotech ETFs tend to be the biggest ones. They have large amounts of assets under management and relatively low expense ratios. Here are five of the best biotech ETFs.

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.

Is SBIO a good biotech ETF?

But SBIO is actually one of the more interesting options on this list of biotech ETFs because of its wide reach, as well as its focus on lesser-known names in the industry. Currently, the fund has about 130 total positions, topping many of the other biotech ETFs featured here when it comes to breadth.