In this article, we discuss 5 best biotech ETFs to buy. If you want to read our discussion on the biotech industry, head directly to 10 Best Performing Biotech ETFs in 2024.
5. Putnam BioRevolution ETF (NYSE:SYNB)
5-Year Share Price Performance as of April 20: 15.67%
The Putnam BioRevolution ETF (NYSE:SYNB) is designed to pursue long-term capital growth by investing in a carefully curated portfolio of 30-50 stocks. As of April 18, the fund boasts net assets totaling $5.43 million, coupled with an expense ratio of 0.70%.
Among the top holdings of the Putnam BioRevolution ETF (NYSE:SYNB) is Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) is a global leader in providing life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. On February 1, RBC Capital analysts reaffirmed an Outperform rating and set a price target of $642 for Thermo Fisher Scientific Inc. (NYSE:TMO).
In the fourth quarter, a total of 111 hedge funds maintained long positions in Thermo Fisher Scientific Inc. (NYSE:TMO), collectively holding a stake valued at $10.3 billion.
4. iShares Biotechnology ETF (NASDAQ:IBB)
5-Year Share Price Performance as of April 20: 16.13%
The iShares Biotechnology ETF (NASDAQ:IBB) seeks to replicate the investment performance of the NYSE Biotechnology Index, composed of American equities within the biotechnology sector. As of April 18, the fund boasts $6.91 billion in net assets, with an expense ratio of 0.45%.
Among its top holdings is Amgen, Inc. (NASDAQ:AMGN), headquartered in Thousand Oaks, California. Amgen is a leading biotechnology company specializing in discovering, developing, manufacturing, and delivering innovative human therapeutics, focusing on areas with significant unmet medical needs. On February 6, Amgen, Inc. (NASDAQ:AMGN) released its financial results for Q4 2023, reporting a 20% year-over-year increase in revenues to $8.2 billion and a net income of $767 million. The normalized EPS for the quarter stood at $4.71, exceeding the consensus by $0.12.
In the fourth quarter of 2023, 69 out of the 933 hedge funds examined by Insider Monkey held shares of Amgen Inc. (NASDAQ:AMGN). The largest stake was held by Josh Overdeck and David Siegel’s Two Sigma Advisors, valued at $333 million.
3. Virtus LifeSci Biotech Products ETF (NYSE:BBP)
5-Year Share Price Performance as of April 20: 19.85%
The Virtus LifeSci Biotech Products ETF (NYSE:BBP) seeks to replicate the performance of the LifeSci Biotechnology Products Index, which tracks biotechnology firms with at least one FDA-approved drug therapy, excluding fees and expenses. As of April 18, the fund possesses $17.84 million in net assets, with an expense ratio of 0.79%.
Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) holds the largest position in the Virtus LifeSci Biotech Products ETF (NYSE:BBP). Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) is an American biopharmaceutical company specializing in the development and commercialization of innovative treatments for eye care.
Insider Monkey’s fourth-quarter database reveals that 18 hedge funds maintained long positions in Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS), down from 20 funds in the previous quarter.
2. Franklin Genomic Advancements ETF (BATS:HELX)
5-Year Share Price Performance as of April 20: 20.61%
The Franklin Genomic Advancements ETF (BATS:HELX) is an actively managed ETF focused on capital appreciation by investing in companies involved in genomic-based technologies, aiming to enhance the quality of life. It targets firms benefiting from or facilitating advancements such as DNA sequencing, gene editing, and personalized medicine. As of April 19, the Franklin Genomic Advancements ETF (BATS:HELX) possesses $8.85 million in net assets.
Leading the portfolio of the Franklin Genomic Advancements ETF (BATS:HELX) is Medpace Holdings, Inc. (NASDAQ:MEDP). Medpace Holdings, Inc. (NASDAQ:MEDP) provides clinical research-based drug and medical device development services worldwide. On February 12, the company reported a Q4 GAAP EPS of $2.46 and revenue of $498.4 million, surpassing Wall Street estimates by $0.24 and $0.63 million, respectively.
Insider Monkey’s fourth-quarter database reveals that 38 hedge funds were bullish on Medpace Holdings, Inc. (NASDAQ:MEDP), up from 36 funds in the previous quarter.
1. VanEck Biotech ETF (NASDAQ:BBH)
5-Year Share Price Performance as of April 20: 23.40%
The VanEck Biotech ETF (NASDAQ:BBH) seeks to replicate the performance of the MVIS US Listed Biotech 25 Index, which comprises companies involved in the development, production, marketing, and sales of drugs utilizing genetic analysis and diagnostic equipment. Established on December 20, 2011, the fund boasts net assets totaling $410.74 million as of April 19.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) holds a prominent position among the top holdings of the 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 13, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) announced that the European Commission granted conditional marketing authorization to CASGEVY for the treatment of Sickle Cell Disease and Transfusion-Dependent Beta Thalassemia (TDT).
In the fourth quarter of 2023, 62 out of the 933 hedge funds examined by Insider Monkey held shares of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). The largest stake was held by Cliff Asness’ AQR Capital Management, valued at $262.34 million.
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