The best approach to being involved with the advent of a breakthrough medicine, or a cure for cancer, as an investor, would be to consider a biotech-focused exchange traded fund (ETF).

The most impressive method to access biotech thus far is through an ETF such as iShares Nanotech Biotech Index(IBB). This ETF gives an inexpensive route to biotech with diversification.

Marc Lichenfield for Seeking Alpha has two main points he wants to share concerning biotech in general:

• Biotech tends to drop in the summer, so there could be a good point-of-entry during the months ahead
• Biotech has an above-average risk, so do not devote too much of your portfolio to it. The sector can also reward generously, making the risk worth it.

While the sector has been quiet lately, if either Hillary Clinton or Barack Obama
wins the presidential election, the biotechnology sector could stand to
benefit, as they’re both supporters of ending the ban on stem cell
research.

Other Biotech ETFs worth your consideration:

• Biotech HOLDRs (BBH)
• SPDR S&P Biotech (XBI)
• PowerShares Dynamic Biotech S&P Genome (PBE)

Tags: Biotechnology, Obama, Sector ETFs