There are five major biotechnology exchange traded funds on the market today, each with its own nuances and spins on the high-flying industry.
The cap-weighted iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) is the largest biotech ETF. Investors can gain equal-weight exposure to the industry with the SPDR S&P Biotech ETF (NYSEArca: XBI), the second-largest biotech ETF by assets, while the PowerShares Dynamic Biotechnology & Genome Portfolio (NYSEArca: PBE) provides a strategic beta approach to biotech names. [Hot August for Biotech ETFs]
Two potential additions to the biotech ETF fray will offer even more refined approaches. Through turnkey ETF solutions firm ETF Issuer Solutions, the BioShares Biotechnology Products Fund and the BioShares Biotechnology Clinical Trials Fund could come to market.
According to a filing with the Securities and Exchange Commission, the issuer has selected tickers for the two ETFs and identified expense ratios, indicating launches could be imminent. The BioShares Biotechnology Clinical Trials Fund will trade under the ticker “BBC” while the BioShares Biotechnology Products Fund will trade with the ticker “BBP.” Both ETFs will charge 0.85% per year, assuming they come to market, according to the SEC filing.
Both funds will trade on the NASDAQ Stock Exchange.