Beat Obamacare with These Biotech ETFs
Many investors are worried about the effects of Obamacare on their health insurance, quality of medical care and the economy. But one health care sub-sector that is booming despite the proposed changes is the biotechnology industry.
Biotech has always been a niche piece of many growth investors’ portfolios, but with the blossoming of the ETF industry you now have access to these cutting edge companies in just a single fund. So far this year biotech is one of the leading sectors in terms of absolute performance which is why it’s a perfect way to diversify your portfolio in a sector that continues to add alpha.
Large Cap Biotech
The largest ETF in the biotech sector is the iShares Biotech ETF (IBB). The fund currently has $2.88 billion in total assets spread among 120 companies with an expense ratio of 0.48%. The top three holdings in IBB include: Regeneron Pharmaceuticals (REGN), Gilead Sciences Inc. (GILD), and Amgen Inc. (AMGN). Together these three companies make up approximately 26% of the fund.