NYSE Arca offers attractive investment opportunities in ETFs
Biotechnology is one of the most promising investment sectors. Many people choose to invest in exchange-traded funds, which help to diversify their portfolios. NYSE Arca offers a range of biotechnology ETFs with good profit potential.
A key advantage of ETFs is that they provide a portfolio with a variety of promising companies. This, in turn, reduces the risk of loss associated with owning shares in a single company.
ETFs offer diversification, which is a key element of a successful investment strategy. These funds offer investors the opportunity to invest in specific sectors while filling their portfolios with assets from different industries and companies.
List of promising funds
Today, biotechnology and pharmaceuticals show good potential. Investing News Network has compiled a list of the most profitable ETFs in this sector. Among them:
1. SPDR Biotech ETF (ARCA:XBI). The fund, launched in 2006, has a return of 16.8% through 2024 and currently has US$7.8 billion in assets under management. SPDR Biotech focuses exclusively on biotechnology stocks in the US market. The fund has returned 5% over the past five years.
2. First Trust NYSE Arca Biotechnology Index Fund (ARCA:FBT) has returned 13% over the past year and has over US$1.2 billion in assets under management. This ETF tracks the Amex Biotechnology Index, which includes the lowest-priced biotechnology stocks. This approach has yielded a five-year return of 6.7%. The fund has 31 assets under management, which is less than the other ETFs on the list. However, it does include large companies such as Exelixis and Incyte.
3. Vanguard Health Care Index Fund ETF (ARCA:VHT) is up 11.9% year-to-date and has US$17.95 billion in assets under management. Vanguard Health gives investors exposure to a broad list of companies in the healthcare sector. Over the past five years, the fund has returned more than 11%. The fund’s expense ratio is just 0.1%.
4. The IShares US Medical Devices ETF (ARCA:IHI) has returned 11.7% to investors. The fund has US$4.8 billion in assets under management and focuses on large-cap US medical device companies. The annualised return over the last five years is 8.27%.
5. The IShares US Healthcare ETF (ARCA:US) was launched in 2000, making it one of the oldest healthcare funds. The fund has returned 11.7% and has US$3.36 billion in assets under management.
This list will be useful for investors who are targeting exchange-traded funds in the biotechnology sector.
