IBB, which holds nearly 190 stocks and is a cap-weighted ETF, has a price-to-earnings ratio of just over 21 and a price-to-book ratio of 4.92. The ETF’s three-year standard deviation is just over 25 percent.

Tax reform, should it come to life, is also seen as a potential boon for the healthcare sector, including biotech companies.

“A planned tax break on cash hoarded outside the country can see a meaningful cash infusion into corporate balance sheets. It is estimated that the healthcare sector has over $150 billion in cash held overseas, with large companies like Pfizer (PFE), Merck (MRK), Johnson & Johnson (JNJ), and Amgen (AMGN) accounting for well over $100 billion. However, it must be noted that not all of this overseas cash will be repatriated in case of a sufficiently attractive tax break, and furthermore, based on historical evidence, much of the repatriated cash will find its way into stock buybacks and dividend growth,” according to Seeking Alpha.

The $9.6 billion IBB tracks the Nasdaq Biotechnology Index and holds nearly 160 stocks. Biogen Inc. (NASDAQ: BIIB), Amgen Inc, (NASDAQ: AMGN), Gilead Sciences Corp. (NASDAQ: GILD) and Celegene Inc. (NASDAQ: CELG) combine for over 31% of IBB’s weight.

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