12 Best Biotech ETFs To Buy

In this article, we discuss 12 best biotech ETFs to buy.

According to Precedence Research, the worldwide biotechnology market was valued at approximately $1,224.31 billion in 2022. It is projected to reach a value of around $3,210.71 billion by 2030, with a compound annual growth rate (CAGR) of 12.8% from 2023 to 2030. The biotechnology industry in countries like China, Japan, and India is witnessing growth propelled by positive government policies. These initiatives target the improvement of medical regulation, standardization of clinical studies, enhancement of reimbursement policies, and acceleration of product approval processes, all of which are expected to create profitable growth prospects for the biotechnology sector

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To name a few hindrances plaguing the biotech industry, EY in a report observed that the 2022 revenue of public biotech companies declined by 1% compared to 2021 due to decreased demand for COVID-19 vaccines and antiviral treatments. 2023 is anticipated to see five patent expirations for well-established biologic products, resulting in a significant loss of revenue. Furthermore, over 20 products, accounting for nearly $200 billion in annual sales, are expected to lose patent protection by 2030. The US Food and Drug Administration (FDA) experienced a decline in approvals for new molecular entities and biologics license applications in 2022, which was attributed to staffing shortages. However, approvals returned to pre-pandemic levels in Q1 of 2023. Lastly, in 2022, all forms of biotech financing, including venture capital investment, debt financing, IPOs, and follow-on offerings, decreased substantially. 

According to Ashwin Singhania, Principal at EY-Parthenon: 

“Innovation is the engine that drives the biotech industry. While the approaching patent cliff is an unavoidable challenge, the pipeline continues to be very robust and the pace of innovation continues to accelerate. If executives can prioritize streamlining processes and the ongoing investment in organic innovation and inorganic growth, they will set themselves up for future success.”

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On a positive note, RBC Capital Markets predicts that large-cap biotech companies with revenue resilience, less binary risk, and optimistic earnings guidance will maintain momentum in early 2023. While some larger companies have set themselves up for future growth and diversification, 2023 may be a flat earnings year for many large caps due to patent expirations and COVID-19 revenue declines. On the other hand, smaller-cap biotechs, though recovering from mid-year lows, have underperformed compared to larger and mid-cap biotechs and pharma. However, some high-quality, catalyst-driven smaller-cap companies are forecasted to perform well in 2023, driven by increasing regulatory permissiveness and potential M&A activity. M&A activity is also expected to rise as large biopharma companies sit on strong balance sheets, face patent cliffs, and experience better policy clarity. This potential uptick in M&A could act as a catalyst for biotech stocks, driving growth and diversification among larger-cap companies facing challenges.

Some of the best biotech stocks to invest in include Eli Lilly and Company (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and AbbVie Inc. (NYSE:ABBV). However, in this article, we discuss the best biotech ETFs to buy. 

Our Methodology 

We chose ETFs that offer exposure to large-, mid- and small-cap biotech ETFs to create a well-rounded list of the popular funds. We have also discussed the top holdings of the ETFs to offer better insight to potential investors. These biotech ETFs have amassed significant gains in the last 5 years. The list is ranked in ascending order of the 5-Year performance as of August 4, 2023. 

Photo by National Cancer Institute on Unsplash

Best Biotech ETFs To Buy

12. iShares Biotechnology ETF (NASDAQ:IBB)

5-Year Performance as of August 4: 8.70%

iShares Biotechnology ETF (NASDAQ:IBB) aims to replicate the performance of the ICE Biotechnology Index, which is composed of biotechnology companies listed in the United States. As of August 1, 2023, the ETF had net assets worth $7.5 billion, and its portfolio consists of 266 stocks. iShares Biotechnology ETF (NASDAQ:IBB) has an expense ratio of 0.45% and it is one of the best biotech ETFs to buy. 

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is the largest holding of the iShares Biotechnology ETF (NASDAQ:IBB). It is a biotechnology firm focused on the development and commercialization of treatments for cystic fibrosis. On August 1, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported a Q2 non-GAAP EPS of $3.89 and a revenue of $2.49 billion, outperforming Wall Street estimates by $0.01 and $70 million, respectively. 

According to Insider Monkey’s first quarter database, 44 hedge funds were bullish on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), compared to 60 funds in the prior quarter. Ian Simm’s Impax Asset Management is the largest stakeholder of the company, with 762,347 shares worth approximately $240 million. 

In addition to Eli Lilly and Company (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and AbbVie Inc. (NYSE:ABBV), Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is one of the best biotech stocks to invest in. 

11. ARK Genomic Revolution ETF (BATS:ARKG)

5-Year Performance as of August 4: 10.40%

ARK Genomic Revolution ETF (BATS:ARKG) is an actively managed ETF focused on long-term capital growth through investments in domestic and foreign companies from sectors relevant to the genomics revolution theme, including healthcare, information technology, materials, energy, and consumer discretionary. Launched on October 31, 2014, the ETF has an expense ratio of 0.75% and holds around 40-60 assets in its portfolio, with net assets totaling $2,158 million. ARK Genomic Revolution ETF (BATS:ARKG) is one of the best biotech ETFs to invest in. 

Exact Sciences Corporation (NASDAQ:EXAS), an American provider of cancer screening and diagnostic test products worldwide, is the top holding of ARK Genomic Revolution ETF (BATS:ARKG). On August 1, Exact Sciences Corporation (NASDAQ:EXAS) reported a Q2 GAAP EPS of -$0.45 and a revenue of $622.1 million, exceeding Wall Street estimates by $0.06 and $20.97 million, respectively. 

According to Insider Monkey’s first quarter database, 38 hedge funds were bullish on Exact Sciences Corporation (NASDAQ:EXAS), compared to 39 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the largest stakeholder of the company, with 11.3 million shares worth $771.6 million. 

Baron Health Care Fund made the following comment about Exact Sciences Corporation (NASDAQ:EXAS) in its second quarter 2023 investor letter:

“We added to our position in Exact Sciences Corporation (NASDAQ:EXAS), a cancer diagnostics company whose flagship product is Cologuard, a stool-based DNA colon cancer screening test. We wrote about Exact Sciences in the first quarter. The company’s core Cologuard business has strong momentum, as confirmed by the company’s recent first quarter financial results. Exact also demonstrated better-than-expected profitability, and management accelerated its timeline to be free cash flow positive to 2023, one year ahead of schedule. The company recently announced that its next generation Cologuard test demonstrated improved sensitivity and specificity for colorectal cancer compared with the first-generation Cologuard test. Once approved and commercialized, the second-generation Cologuard test should result in lower false positives, which should benefit Exact by boosting its gross margins. We continue to believe Exact has a long runway for growth in the Cologuard business. In addition, we think Exact’s initiatives in minimal residual disease testing and multi-cancer early detection represent significant optionality.”

10. VanEck Biotech ETF (NASDAQ:BBH)

5-Year Performance as of August 4: 22.58%

VanEck Biotech ETF (NASDAQ:BBH)’s goal is to closely mimic the price and yield performance of the MVIS US Listed Biotech 25 Index. This index is designed to monitor the overall performance of companies engaged in the development, production, marketing, and sales of drugs based on genetic analysis and diagnostic equipment. VanEck Biotech ETF (NASDAQ:BBH) was established on December 20, 2011, and as of August 1, 2023, it holds a total of $484.95 million in net assets, with an expense ratio of 0.35%. It is one of the best biotech ETFs to buy. 

Amgen Inc. (NASDAQ:AMGN) is the top holding of VanEck Biotech ETF (NASDAQ:BBH). Amgen Inc. (NASDAQ:AMGN) develops, manufactures, and distributes human therapeutics worldwide. Its primary areas of focus include inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience. On August 1, Amgen Inc. (NASDAQ:AMGN) declared a $2.13 per share quarterly dividend, in line with previous. The dividend is payable on September 8, to shareholders of record on August 18. 

According to Insider Monkey’s first quarter database, 57 hedge funds were bullish on Amgen Inc. (NASDAQ:AMGN), compared to 60 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest position holder in the company, with 1.6 million shares worth $404.4 million. 

Here is what Smead Capital Management has to say about Amgen Inc. (NASDAQ:AMGN) in its Q3 2022 investor letter:

“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors were dominated by  Amgen (NASDAQ:AMGN). Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”

9. Virtus LifeSci Biotech Products ETF (NYSE:BBP)

5-Year Performance as of August 4: 22.59%

Virtus LifeSci Biotech Products ETF (NYSE:BBP) follows the price and yield performance of the LifeSci Biotechnology Products Index, which consists of biotechnology companies listed in the United States. Virtus LifeSci Biotech Products ETF (NYSE:BBP) was established on December 17, 2014. As of August 1, 2023, the ETF manages assets worth $19.34 million with an expense ratio of 0.79%. The ETF’s portfolio includes 57 stocks, and it provides a distribution yield of 0.20%. 

The largest holding of Virtus LifeSci Biotech Products ETF (NYSE:BBP) is BridgeBio Pharma, Inc. (NASDAQ:BBIO). The company is involved in the exploration, advancement, and distribution of different medications to treat genetic diseases. On July 17, BridgeBio Pharma, Inc. (NASDAQ:BBIO) stock skyrocketed by 80% following the company’s announcement of its intention to seek US regulatory approval for its drug acoramidis by the year-end. The decision was driven by the release of favorable Phase 3 data for the drug’s effectiveness in treating transthyretin amyloid cardiomyopathy (ATTR-CM).

According to Insider Monkey’s first quarter database, 44 hedge funds were bullish on BridgeBio Pharma, Inc. (NASDAQ:BBIO), compared to 28 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the largest stakeholder of the company, with 26.6 million shares worth $441.3 million. 

8. Franklin Genomic Advancements ETF (BATS:HELX)

5-Year Performance as of August 4: 25.18%

Franklin Genomic Advancements ETF (BATS:HELX) is an actively managed fund introduced by Franklin Templeton on February 25, 2020. It focuses on investing in companies that are expected to gain from advancements in genomic-based research techniques and technologies. The ETF offers an expense ratio of 0.50% and comprises a portfolio of 58 stocks. Franklin Genomic Advancements ETF (BATS:HELX) is one of the best biotech ETFs to buy based on 5-year performance. 

Thermo Fisher Scientific Inc. (NYSE:TMO) is the largest holding of Franklin Genomic Advancements ETF (BATS:HELX). Thermo Fisher Scientific Inc. (NYSE:TMO) offers a wide range of life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services worldwide. On July 13, Thermo Fisher Scientific Inc. (NYSE:TMO) declared a $0.35 per share quarterly dividend, in line with previous. The dividend is payable on October 13, to shareholders of record on September 15. 

According to Insider Monkey’s first quarter database, 98 hedge funds were bullish on Thermo Fisher Scientific Inc. (NYSE:TMO), compared to 92 funds in the prior quarter. David Blood and Al Gore’s Generation Investment Management is the biggest stakeholder of the company, with 1.4 million shares worth $854.8 million. 

Baron Health Care Fund made the following comment about Thermo Fisher Scientific Inc. (NYSE:TMO) in its second quarter 2023 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is the world’s largest life sciences tools company. Thermo Fisher provides analytical instruments, laboratory equipment, software, services, consumables, and reagents for life sciences research, manufacturing, analysis, discovery, and diagnostics. Shares fell along with other life sciences tools stocks because of multiple headwinds, including a slowdown in capital spending among pharmaceutical customers, slowed growth in China, lack of funding and spending among pre-commercial biotechnology companies, and inventory destocking among bioprocessing customers. We view these headwinds as temporary and believe management can achieve its long-term goal of solid mid- to high single-digit organic revenue growth driven by long-term end-market dynamics in the life sciences industry, including favorable demographics, scientific advances, new technology, and increased regulations.”

7. First Trust Health Care AlphaDEX Fund (NYSE:FXH)

5-Year Performance as of August 4: 32.75%

First Trust Health Care AlphaDEX Fund (NYSE:FXH) tracks the performance of the StrataQuant Health Care Index, aiming to achieve investment results similar to its price and yield before fees and expenses. Established on May 8, 2005, the ETF holds $1.5 billion in net assets with an expense ratio of 0.61% as of August 1, 2023. The fund’s portfolio consists of 85 stocks. First Trust Health Care AlphaDEX Fund (NYSE:FXH) is one of the best biotech ETFs to invest in. 

United Therapeutics Corporation (NASDAQ:UTHR) is the largest holding of First Trust Health Care AlphaDEX Fund (NYSE:FXH). United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company that specializes in developing and selling products that cater to the medical needs of patients suffering from chronic and life-threatening illnesses. On August 2, United Therapeutics Corporation (NASDAQ:UTHR) reported a Q2 GAAP EPS of $5.24 and a revenue of $596.5 million, outperforming Wall Street estimates by $0.75 and $72.33 million, respectively. 

According to Insider Monkey’s first quarter database, 51 hedge funds were bullish on United Therapeutics Corporation (NASDAQ:UTHR), compared to 49 funds in the prior quarter. Kurt Von Emster’s VenBio Select Advisor is the largest stakeholder of the company, with 2.87 million shares worth $642.7 million. 

6. iShares Global Healthcare ETF (NYSE:IXJ)

5-Year Performance as of August 4: 41.28%

iShares Global Healthcare ETF (NYSE:IXJ) aims to replicate the performance of the S&P Global 1200 Healthcare Sector Index, which includes global healthcare sector equities, including pharmaceutical, biotechnology, and medical device companies. As of August 1, 2023, the ETF’s total net assets amount to nearly $4 billion, with an expense ratio of 0.42%. The fund’s portfolio comprises 112 stocks. iShares Global Healthcare ETF (NYSE:IXJ) is one of the best biotech ETFs to monitor. 

UnitedHealth Group Incorporated (NYSE:UNH), an American multinational healthcare company, is the largest holding of the iShares Global Healthcare ETF (NYSE:IXJ). On July 14, UnitedHealth Group Incorporated (NYSE:UNH) reported Q2 non-GAAP earnings per share of $6.14, beating market consensus by $0.16. The revenue increased 15.6% year-over-year to $92.9 billion, outperforming Wall Street estimates by $1.94 billion. 

According to Insider Monkey’s first quarter database, Rajiv Jain’s GQG Partners is the leading position holder in UnitedHealth Group Incorporated (NYSE:UNH), with 4.8 million shares worth $2.28 billion. 

Like Eli Lilly and Company (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and AbbVie Inc. (NYSE:ABBV), UnitedHealth Group Incorporated (NYSE:UNH) is one of the top biotech stocks to consider. 

L1 Capital International Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2023 investor letter:

“Close observers of the Fund will note the increased exposure to healthcare, currently 13% of the portfolio. Healthcare is generally less macro-sensitive than some other sectors. In a reversal of market sentiment compared to 2022, the healthcare sector has been under modest pressure due to what we consider to be some short-term transitory issues, while technology, particularly anything to do with AI, has become the market’s dish du jour. We have been selectively increasing our investment in a few very high-quality healthcare businesses at prices we consider to be fair. UnitedHealth Group Incorporated (NYSE:UNH) is now a top 10 holding, and our investment thesis is outlined in this report.

We have previously written on our exposure to taxes through our investment in Intuit and its market leading TurboTax franchise (Intuit also owns the QuickBooks small business accounting franchise, Credit Karma and Mailchimp). UnitedHealth Group (UnitedHealth) is leading the charge to postpone the inevitable, while lowering overall healthcare system costs.

U.S. health spending has outpaced GDP growth for decades, with spending on healthcare increasing from around 12% of GDP in the 1980s to nearly 20% today, driven by advancements in healthcare capabilities and an aging population with increased life expectancy…” (Click here to read the full text)

5. Fidelity MSCI Health Care Index ETF (NYSE:FHLC)

5-Year Performance as of August 4: 42.62%

Fidelity MSCI Health Care Index ETF (NYSE:FHLC) has a broad focus on the entire US healthcare market, encompassing over 300 large, mid, and small-cap companies across more than 10 subsectors. It tracks the MSCI USA IMI Health Care 25/50 Index as its underlying benchmark. Fidelity MSCI Health Care Index ETF (NYSE:FHLC) was launched on October 21, 2013, and as of August 1, 2023, it holds total net assets of $3.08 billion, with an expense ratio of 0.08%. Fidelity MSCI Health Care Index ETF (NYSE:FHLC) is one of the best biotech ETFs to invest in. 

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company involved in the discovery, development, and marketing of human pharmaceuticals worldwide. Eli Lilly and Company (NYSE:LLY) is a prominent holding of Fidelity MSCI Health Care Index ETF (NYSE:FHLC). On June 26, the company declared a quarterly dividend of $1.13 per share, in line with previous. The dividend is payable on September 8, to shareholders of record as of August 15. 

According to Insider Monkey’s first quarter database, 72 hedge funds were bullish on Eli Lilly and Company (NYSE:LLY), compared to 76 funds in the preceding quarter. 

Baron Health Care Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its second quarter 2023 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company developing and marketing drugs in oncology, diabetes, Alzheimers, immunology, and other diseases. Shares climbed due to continued investor excitement around novel weight loss drugs in the GLP-1 class, including Lilly’s Mounjaro. Given demand that is orders of magnitude more than supply, the full potential of the GLP-1 class of drugs remains unclear, with sales projections eclipsing $100 billion. This number would set a new industry record by a large margin. Drug development in this space is understandably fierce, and as recently as late June, Eli Lilly revealed new data from its diabetes/obesity pipeline assets that will further enhance the value proposition offered to patients. We retain conviction.

In pharmaceuticals, our largest investment continues to be in Eli Lilly and Company. Lilly’s new diabetes drug Mounjaro is on track to be FDA approved for obesity in 2023. At a medical conference in June, Lilly announced Phase 2 clinical data for a next-generation obesity drug called retatrutide, which showed the drug achieved up to 17.5% mean weight loss at 24 weeks in adults with obesity and up to 24.2% mean weight loss at 48 weeks. Lilly also announced Phase 2 clinical data showing its once daily oral drug orforglipron achieved up to 14.7% mean weight loss at 36 weeks in adults with obesity. The results from these pipeline obesity medicines confirmed Lilly’s status as a market leader in the diabetes and obesity category. Also during the quarter, Lilly announced that its drug Donanemab slowed cognitive and functional decline in a Phase 3 study in people with early symptomatic Alzheimer’s disease. We continue to think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”

4. Vanguard Health Care Index Fund (NYSE:VHT)

5-Year Performance as of August 2: 43.34%

Vanguard Health Care Index Fund (NYSE:VHT) aims to replicate the performance of the Spliced U.S. Investable Market Health Care 25/50 Index, which serves as a benchmark for gauging the investment returns of healthcare stocks. This ETF follows a passive management strategy, employing a full-replication approach. As of December 21, 2022, the expense ratio for Vanguard Health Care Index Fund (NYSE:VHT) is 0.10%. The fund was launched on January 26, 2004. It is one of the best biotech ETFs to invest in. 

American multinational pharmaceutical and biotechnology corporation, Pfizer Inc. (NYSE:PFE), is one of the top holdings of Vanguard Health Care Index Fund (NYSE:VHT). On August 1, Pfizer Inc. (NYSE:PFE) reported a Q2 non-GAAP EPS of $0.67, beating market consensus by $0.09. However, the revenue of $12.7 billion declined 54.1% on a reported basis and missed Street estimates by $700 million. 

According to Insider Monkey’s first quarter database, Pfizer Inc. (NYSE:PFE) was part of 73 hedge fund portfolios, compared to 75 in the prior quarter. Cliff Asness’ AQR Capital Management is the biggest stakeholder of the company, with 9.3 million shares worth $380.2 million.

Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

3. iShares U.S. Healthcare ETF (NYSE:IYH)

5-Year Performance as of August 4: 45.71%

iShares U.S. Healthcare ETF (NYSE:IYH)’s primary objective is to mirror the performance of the Russell 1000 Health Care RIC 22.5/45 Capped Gross Index, which consists of U.S. healthcare sector equities. This ETF provides investors exposure to domestic stocks of companies involved in healthcare equipment and services, pharmaceuticals, and biotechnology. The fund was established on June 12, 2000, and as of August 2, 2023, it holds net assets amounting to $3.18 billion, with an expense ratio of 0.39%. iShares U.S. Healthcare ETF (NYSE:IYH) is one of the best biotech ETFs to buy. 

One of iShares U.S. Healthcare ETF (NYSE:IYH)’s top holdings is Johnson & Johnson (NYSE:JNJ), an American pharmaceutical giant. On July 20, Johnson & Johnson (NYSE:JNJ) reported a Q2 non-GAAP EPS of $2.80 and a revenue of $25.53 billion, outperforming Wall Street estimates by $0.18 and $860 million, respectively. 

According to Insider Monkey’s first quarter data, 86 hedge funds were long Johnson & Johnson (NYSE:JNJ), compared to 84 funds in the last quarter. D E Shaw is a prominent stakeholder of the company, with 3.9 million shares worth $608.7 million. 

ClearBridge Large Cap Value Strategy made the following comment about Johnson & Johnson (NYSE:JNJ) in its first quarter 2023 investor letter:

“The tech-dominated quarter was a headwind for both defensive and cyclical sectors, with shares of health care holdings such as UnitedHealth Group (UNH), Elevance (ELV) and Johnson & Johnson (NYSE:JNJ) declining after a strong 2022.”

2. Health Care Select Sector SPDR Fund (NYSE:XLV)

5-Year Performance as of August 4: 48.24%

Health Care Select Sector SPDR Fund (NYSE:XLV) seeks to achieve investment results that closely align with the price and yield performance of the Health Care Select Sector Index. This ETF aims to offer targeted exposure to companies operating in healthcare-related industries, including pharmaceuticals, health care equipment and supplies, health care providers and services, biotechnology, life sciences tools and services, and health care technology. The fund was established on December 16, 1998, and has a low expense ratio of 0.10%. Health Care Select Sector SPDR Fund (NYSE:XLV)’s portfolio consists of 65 stocks.

AbbVie Inc. (NYSE:ABBV) is a top holding of Health Care Select Sector SPDR Fund (NYSE:XLV). On July 27, AbbVie Inc. (NYSE:ABBV) reported Q2 non-GAAP earnings per share of $2.91, beating market consensus by $0.10. The revenue of $13.87 billion also outperformed Street estimates by $350 million. 

According to Insider Monkey’s first quarter database, 75 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV), compared to 73 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 2.26 million shares worth $360.8 million. 

Baron Health Care Fund made the following comment about AbbVie Inc. (NYSE:ABBV) in its second quarter 2023 investor letter:

“Apart from stock selection, the Fund also benefited from its lower exposure to AbbVie Inc. (NYSE:ABBV), whose shares were down almost 15% in the Benchmark due to concerns about the company’s growth profile after the loss of exclusivity for lead drug Humira. We exited our position during the quarter. We sold AbbVie Inc. due to our less optimistic view of the company’s pipeline and long-term growth profile.”

1. Invesco S&P 500 Equal Weight Health Care ETF (NYSE:RSPH)

5-Year Performance as of August 4: 52.48%

Invesco S&P 500 Equal Weight Health Care ETF (NYSE:RSPH) tracks the S&P 500 Equal Weight Health Care Index, which evenly distributes the weight of stocks within the healthcare sector of the S&P 500 Index. This ETF was established in 2006 and as of August 2, 2023, it has a 30-day SEC yield of 0.69% and an expense ratio of 0.40%. Invesco S&P 500 Equal Weight Health Care ETF (NYSE:RSPH) is one of the best biotech ETFs to buy. 

Bio-Rad Laboratories, Inc. (NYSE:BIO) is a prominent holding of the Invesco S&P 500 Equal Weight Health Care ETF (NYSE:RSPH). The company produces and distributes life science research and clinical diagnostic products. On July 20, Bio-Rad Laboratories, Inc. (NYSE:BIO) authorized a new stock repurchase plan of $500 million. The company stated that the acquired shares will be utilized for supporting employee stock plans, financing acquisitions, and reducing dilution resulting from stock issuances.

According to Insider Monkey’s first quarter database, 47 hedge funds were bullish on Bio-Rad Laboratories, Inc. (NYSE:BIO), compared to 42 funds in the prior quarter. 

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Disclosure: None. 12 Best Biotech ETFs To Buy is originally published on Insider Monkey.