4-Star ETFs Poised to Pop: iShares Nasdaq Biotechnology
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Nasdaq Biotechnology Index (Nasdaq: IBB) has earned a respected four-star ranking.
With that in mind, let's take a closer look at IBB and see what CAPS investors are saying about the ETF right now.
iShares Nasdaq Biotechnologyfacts
|Total Net Assets||$2.4 billion|
|Investment Approach||Seeks investment results that correspond generally to the Nasdaq Biotechnology Index. The underlying index contains securities of Nasdaq-listed companies that are classified as either biotechnology or pharmaceuticals.|
|1-Year / 3-year / 5-Year Annualized Returns||54.5% / 22.5% / 11.6%|
|Top 3 Holdings and Portfolio Weight||Alexion Pharmaceuticals (8.9%)|
Regeneron Pharmaceuticals (8.1%)
|Alternatives||SPDR S&P Biotech|
First Trust NYSE Arca Biotechnology Index
PowerShares Dynamic Biotech & Genome
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 93% of the 177 members who have rated iShares Nasdaq Biotechnology believe the ETF will outperform the S&P 500 going forward.
Earlier this year, one of those Fools, ravens9111, tapped iShares Nasdaq Biotechnology as a particularly smart way to get into the space: "Playing individual biotech stocks is risky business. This is probably the least risky way to play the sector without taking a chance of waking up one morning to see the company's drug was rejected and opens down 50%+ on an FDA rejection."
Owning exceptional ETFs is a surefire way to secure your financial future. Of course, despite a strong four-star rating, iShares Nasdaq Biotechnology may not be your top choice.
Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.