5 Best Biotech ETFs To Buy

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.”