While Medivation is not a member of FBT’s lineup, Incyte is the ETF’s largest holding at 7.1%. Intermune and Vertex combine for another 9.7%.
The SPDR S&P Biotech ETF (NYSEArca: XBI), the ETF that recently rose to added prominence because of the surge in shares of Intercept Pharmaceuticals (NasdaqGM: ICPT), holds shares of Idenix, BioMarin, Puma, Alexion, Medivation, Vertex, Intermune and Incyte. However, XBI is an equal-weight ETF, which means its leverage to upside generated takeover headlines could be less than that of FBT’s. [Tiny Stocks Could Mean Big Gains for This Biotech ETF]
Then again, Morgan Stanley recently noted that 75% of recent acquirers across all sectors have seen their shares rise on announced takeover news. If that trend continues and it is large-cap biotech names acquiring the aforementioned names, then all five biotech ETFs stand to benefit to some degree.
First Trust NYSE Arca Biotechnology Index Fund
