Biotech investing may not be the most obvious place for investors to look right now, but factors may be turning in the category’s favor. Multiple rate cuts in the back half of 2025 and a friendlier regulatory regime may position biotech investing as a shrewd option to end the year. One biotech ETF, GDOC, may have a case to make as it sends a strong buy signal.
See more: How Leading Emerging Market ETF GEM Assesses Investments
The Future Health Care Equity ETF (GDOC) charges a 75 basis point fee for an active approach to biotech. The biotech ETF actively invests in the companies that are driving global biotech innovation. Those potential investments include companies focused on areas like genomics, digital healthcare, and precision medicine, to name a few categories.
Biotech ETF GDOC’s Tech Chart May Signal a Buy
What’s more, its active managers may invest in futures, forwards, and other options that help craft the ETF’s overall exposure. Together, that has helped the fund perform well in the second half of this year. While it has performed alright on a YTD basis, it has spiked in the last few weeks.
Specifically, the active biotech ETF has returned 16% over the last three months and 9.4% over the last month, per ETF Database data. That latter return outperformed the fund’s ETF Database Category average for that time frame. The performance spike also coincides with the recent Fed rate cuts.
Together, that has helped GDOC send a strong buy signal, according to YCharts data. Looking to the ETF’s tech chart, the fund’s price has risen above both its 50- and 200-day simple moving averages (SMAs) as of November 14.
That may make now the time for investors looking to add a tech-flavored ETF, with GDOC offering strong momentum. While many investors may be concerned about megacap tech concentration risk, they can still benefit from AI innovation in biotech. An ETF like GDOC and its active approach can provide a bit more bang for their investor dollar if debt service costs continue to drop.
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