5 Best Biotech ETFs To Buy

3. VanEck Biotech ETF (NASDAQ:BBH)

5-Year Share Price Performance as of April 2: 25.65%

VanEck Biotech ETF (NASDAQ:BBH) aims to mirror the performance of the MVIS US Listed Biotech 25 Index. The index is designed to represent the performance of companies engaged in the development, production, marketing, and sales of drugs utilizing genetic analysis and diagnostic equipment. VanEck Biotech ETF (NASDAQ:BBH) is one of the best biotech ETFs to invest in. The fund was established on December 20, 2011. As of April 2, 2024, VanEck Biotech ETF (NASDAQ:BBH)’s net assets amounted to $439.53 million, and the fund featured an expense ratio of 0.35%. 

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is one of the top holdings of VanEck Biotech ETF (NASDAQ:BBH). Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company primarily focused on developing and commercializing therapies for cystic fibrosis. On February 5, the company reported a Q4 non-GAAP EPS of $4.20 and a revenue of $2.52 billion, outperforming Wall Street estimates by $0.11 and $10 million, respectively. 

According to Insider Monkey’s fourth quarter database, 62 hedge funds were bullish on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), compared to 57 funds in the last quarter. 

Aristotle Atlantic Core Equity Strategy stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its fourth quarter 2023 investor letter:

“Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) develops drugs for treating cystic fibrosis, cancer, inflammatory bowel, autoimmune disease and neurological disorders. The biotechnology company has four commercial drugs used to treat cystic fibrosis. Vertex has other drugs in development, including additional cystic fibrosis treatments and medications addressing sickle cell disease, beta thalassemia, alpha-1 antitrypsin deficiency and pain.

Vertex is the global leader in treating cystic fibrosis and has additionally built a robust pipeline in several therapeutic areas. Late-stage studies in acute and neuropathic pain are expected to be another catalyst for the company. We believe Vertex’s valuation is attractive and at a discount relative to their 5-year historical average. Additionally, the company is well capitalized, with roughly $12.5 billion in net cash on its balance sheet.”