5 Best Biotech ETFs To Buy

2. Tema Cardiovascular and Metabolic ETF (NASDAQ:HRTS)

5-Year Share Price Performance as of April 2: 25.70%

Tema Cardiovascular and Metabolic ETF (NASDAQ:HRTS) is an actively managed fund aimed at achieving long-term capital growth by investing in companies that are at the forefront of combating obesity and cardiometabolic diseases. The Tema Cardiovascular and Metabolic ETF (NASDAQ:HRTS) was launched on November 20, 2023. As of April 2, 2024, the fund had $59.2 million in assets under management, along with a net expense ratio of 0.75% and a portfolio of 45 stocks. It is one of the best biotech ETFs to buy. 

Eli Lilly and Company (NYSE:LLY) is one of the top holdings of the Tema Cardiovascular and Metabolic ETF (NASDAQ:HRTS). In Q4 2024, Eli Lilly and Company (NYSE:LLY) surpassed Wall Street expectations with strong financial results driven by sales of its new diabetes and weight loss treatments.

According to Insider Monkey’s fourth quarter database, 102 hedge funds were bullish on Eli Lilly and Company (NYSE:LLY), same as the prior quarter. 

Aristotle Atlantic Core Equity Strategy stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2023 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its top-selling drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment, Human pharmaceutical products.

Eli Lilly has a deep pipeline in treatment areas focused on metabolic disorders, oncology, immunology and central nervous system disorders. Currently, there are two phase three assets, Orforglipron, an oral GLP-1 and retatrutide, a triple incretin agonist, which have the potential to expand upon the potential success of Mounjaro. We believe that Mounjaro has the potential to commercialize beyond type 2 diabetes and obesity, potentially in the areas mentioned above of heart disease, sleep apnea, fatty liver disease and chronic kidney disease. We believe the premium valuation is supported by this outsized growth profile.”

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