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


February 2001

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.

Expense Ratio


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%)
Amgen (7.8%)


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.

If that's the case, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.