In this article, we discuss 5 best biotech ETFs to buy. If you want to read our detailed discussion on the biotech industry, head over to 12 Best Biotech ETFs To Buy.
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.”
