The biotechnology sector has witnessed unprecedented growth that has left all major indices far behind in both annual and cumulative performance over the past decade and more notably 5 years. Using the iShares NASDAQ Biotechnology Index (IBB) and SPDR S&P Biotech (XBI) as proxies, these ETFs have posted annual returns of greater than 30% over the past 5 years while more than quadrupling returns on a cumulative basis over the past decade. It is noteworthy to point out that both IBB and XBI have risen to all-time highs recently while IBB broke the $400 per share barrier as well.
A novel way to play the biotechnology cohort has entered into the ETF universe via BioShares™ Biotechnology Products (BBP) ETF. BBP offers a pure biotech play with no holdings in the generic, specialty pharma, life science tools, medical device, diagnostic or other healthcare companies. Thus this ETF focuses solely on the biotechnology cohort with at least one FDA approved product in its portfolio. Continue reading "A Newly Issued Pure Biotech ETF Worth Considering"