On Monday, President Trump vowed “Medicine prices will be coming way down — way, way, way down — and that’s going to happen fast.”
Trump added that pharmaceuticals prices in the U.S. are “outrageous.” Earlier this year, Trump said the pharmaceuticals companies “are getting away with murder” when it comes to pricing on their products.
“However, biotechnology ETFs might be the better bet. Credit Suisse says that its healthcare industry scorecard suggests that biotech and life sciences stocks are ‘the source of the broader industry group’s valuation appeal,’” reports Barron’s.
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.