Finding The Best Biotech ETF

October 29, 2014

BioTechMarch

While FBT didn't perform as badly as some others in the list, they all retreated very quickly.

Wild Rides Assured

Biotech, perhaps more than any other sector, is incredibly "swingy," and subject to news flow contagion. One firm in the space can get good news, and that can get investors buying up everything remotely related.

One drug can fail a Food & Drug Administration trial, and the whole sector can sell off as investors head for the door.

The moral of the story here? The more narrow the investment thesis, the more you have to look under the hood. We've had FBT flagged as an "opportunity pick" since we instituted those little light bulbs on the fund pages.

Bulb

 


 

At the time this article was written, the author held no positions in the securities mentioned (and he knows biotech—ETF.com President Matt Hougan once lost him a lot of money when he was a biotech analyst at the author's mutual fund). You can reach Dave Nadig at [email protected] or on Twitter @DaveNadig.

 

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