Biotechnology exchange traded funds have rebounded after the presidential election and could find further strength under a Donald Trump administration.
On the upcoming webcast, Will Trump Make Biotechnology Great Again?, Andrew McDonald, CEO of LifeSci Advisors and Co-Portfolio Manager of the BioShares funds, and Paul Yook, Founder of LifeSci Index Partners, and Co-Portfolio Manager of the BioShares funds, will try to outline biotechnology’s life under President-elect Trump and look to potential opportunities in cutting-edge drug producers.
For instance, the BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC) tracks potential up-and-coming biotechnology companies that are in the clinical trials stage, providing investors with the opportunity to gain exposure to a high-growth segment of the global economy.
BBC specifically targets companies that design specialized drugs that range from antivirals, antibiotics and cancer-fighting medicines to gene therapies, cell-based therapies and enzyme replacement therapies are developed in the biotech sector.
The ETF will focus on biotechnology companies that are in the clinical trials stage, which include those that are typically younger, smaller companies without a FDA approved drug but instead focus on testing their experimental treatments in human clinical trials.
Top holdings include Clovis Oncology 3.2%, Array Biopharma 2.8%, Biocryst Pharmaceuticals 2.4%, Blueprint Medicines 2.3% and Aimmune Therapeutics. Components are also more-or-less equally weighted to allow each security’s performance to affect the fund equally.
Consequently, potential investors would be exposed to the small-cap segment of the biotech industry, which could prove to produce the next blockbuster drug or provide capital appreciation as an acquisition target from larger companies.
“Clinical trial stage biotech firms are important because they work at the cutting edge of experimental biotechnology: taking risks, testing out innovative approaches and novel compounds that, if approved, could one day become blockbuster drugs,” according to BioShares.
Financial advisors who are interested in learning more about the biotech space can register for the Tuesday, November 29 webcast here.