Biotech ETFs enjoyed a huge rally in January to break out to record highs. The sector has also displayed relative strength during the recent market pullback on Eurozone debt worries. [Biotech ETFs Break Out]
“The jarring pace of change, single-product liability, regulatory uncertainties, and intellectual property rights make picking stocks in the biotech sector a high-risk/high-reward proposition,” says Morningstar analyst Robert Goldsborough. “As such, we think investing in the industry via an ETF makes a lot of sense; it’s an extremely low-cost way to gain diverse exposure to the industry in one trade.”
iShares Nasdaq Biotechnology
