This ssector ETF follows a benchmark that weights stocks by market cap. As of April 18, Human Genome accounted for only 0.3% of the portfolio, while Gilead represented 5.4%.
Gilead shares climbed 14% on Thursday after the company announced solid treatment results for its experimental Hepatitis C drug in a study.
Some investors and traders use biotech ETFs to get exposure to the entire sector and reduce single-stock risk.
Earlier this year, Josh Brown at The Reformed Broker blog predicted the biotech sector was ripe for takeovers.
“The upside here is that large pharmas will continue to acquire these companies so long as their own R&D departments are starving. They have tons of cash and a burning desire to add pipeline — which makes almost every publicly-traded biotech a target for someone,” Brown wrote.
iShares Nasdaq Biotechnology