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8 Great Biotech ETFs to Buy

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Biotech stocks typically are considered one of Wall Street’s more aggressive sources of growth. These companies spend years and gobs of money to create breakthrough biological treatments and diagnostic tools, and successful developments can literally change their fortunes – and the fortunes of shareholders – overnight.

The flipside? Many of these companies generate no revenues, and are reliant on just one or two products to change that. Thus, failure to receive FDA approval can put their very existence at risk, and any setbacks often result in swift, stark losses.

Typically, this risk scenario puts biotech stocks on the outs when the market is volatile and investors are looking to go on the defensive. But so far through the first months of a very shaky 2018 in which the markets are essentially flat, most biotech exchange-traded funds are actually beating the market soundly.


It makes sense. While Wall Street might be worried about a trade war with China or tensions in Syria, these biotech companies still are running clinical trials, and still generating interest from larger pharmaceutical companies that are looking to buy their way to more robust pipelines.

Biotech ETFs are a safer way to buy into the space than individual companies. By investing in a basket of dozens or even hundreds of these biotechnology stocks, you reduce the risk that a single-stock failure will torpedo your whole investment, while still participating in the broad upside that this industry has to offer. Here’s a closer look at eight funds that give you varying types of exposure to biotech.

SEE ALSO: The 15 Best ETFs for a Prosperous 2018

Data is as of April 18. Click on ticker-symbol links in each slide for current share prices and more.


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