However, new drug approvals, or lack thereof in 2016, weighed on biotechnology ETFs last year. That could change in 2017.

“Examining a long-term chart of the popular IBB ETF, Evercore ISI technician Rich Ross points out that the biotech tracker suffered significant losses from mid-2016 to the end of the year, deeming the pullback “a very tough stretch” for the group. But since then, IBB has shown signs of a bullish rally ahead since it pulled back to its 200-day moving average,” reports CNBC.

ETF traders who are betting big on the biotechnology sector rebound have also utilized leveraged long options including the Direxion Daily S&P Biotech Bull Shares (NYSEArca: LABU), which takes the 3x or 300% daily performance of the S&P Biotechnology Select Industry Index.

Other options include the ProShares UltraPro Nasdaq Biotechnology (NasdaqGM: UBIO), which takes the 3x daily performance of the Nasdaq Biotechnology Index, and the ProShares Ultra Nasdaq Biotechnology (NasdaqGM: BIB), which takes the 2x performance of the same benchmark.

For more information on the biotech sector, visit our biotechnology category.