5 Best Biotech ETFs To Buy

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.”