Because R&D in biotechnology is complex and the rate of drug approval remains uncertain, investment strategies followed by ETFs adopt two distinct models
- broad based funds cast a wide net, as poor performing clinical-stage companies could become tomorrow's stars - with more than 190 holdings, iShares fund
limits risk exposure through diversification - focused funds, targeting break-through technologies, advanced treatments of rare diseases or clinical-stage research, accept high risk exposure (volatility) in the hope of above average performance
Including funds based on either models as well as leveraged funds, the theme is benchmarked with the iShares NASDAQ Biotechnology ETF
Our ETF market sector themes present a cross-sectional view of equity trends – in terms of market coverage, size and style. We hope to achieve a fair coverage of ETFs in each category, which is a work in progress
Leveraged Direxion Daily S&P Biotech Bull 3X Shares ETF