Loading...
Loading...
Investors have witnessed some incredible trading in the biotechnology ETF world as of late, as huge moves have been pretty much the norm in this corner of the market. In fact, the top biotech ETF, the
iShares Nasdaq Biotechnology ETF (IBB), has oscillated between a 10% gain and a 10% loss in just the past three months alone.
Yet while many biotech ETFs have faltered, investors haven't seen the same situation take place in the pharma ETF market. In this corner of the drug world, investments have seen weakness, but have held up much better than their more volatile biotech peers (see
all the health care ETFs here).
Part of the reason for this is the focus of pharma ETFs on large caps as well as the significant allocations to companies that engage in various consumer product operations. These companies, like
Johnson & Johnson ( or
Merck (Loading...
Loading...
have big components in defensive industries and thus did not really participate in the bubble-like trading that many high flying biotechnology stocks experienced.
Pharma ETFs and More Information
Some ETFs that saw this type of trading include the
PowerShares Dynamic Pharmaceutical ETF (PJP), the
iShares US Pharmaceutical ETF (IHE), and the
SPDR S&P Pharmaceutical ETF (XPH). All three have outperformed IBB by more than 1,000 basis points in the past three months and may be interesting picks for investors seeking some level of drug stock exposure, but with lower levels of risk (also see
Inside the Wild Ride of Biotech ETFs).
For these investors, it might be a good idea to watch our short video below which highlights some of the trends in this market in greater detail, as well as the key differences between the aforementioned pharma ETFs:
Want the latest recommendations from Zacks Investment Research? Today, you can download
7 Best Stocks for the Next 30 Days.
Click to get this free report >>ISHARES NDQ BIO (IBB): ETF Research Reports
ISHARS-US PHARM (IHE): ETF Research Reports
PWRSH-DYN PHARM (PJP): ETF Research Reports
SPDR-SP PHARMA (XPH): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in