4-Star ETFs Poised to Pop: iShares Nasdaq Biotechnology

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Nasdaq Biotechnology Index (Nasdaq: IBB  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at IBB and see what CAPS investors are saying about the ETF right now.

iShares Nasdaq Biotechnology facts

Inception February 2001
Total Net Assets $2.4 billion
Investment Approach Seeks investment results that correspond generally to the Nasdaq Biotechnology Index. The underlying index contains securities of Nasdaq-listed companies that are classified as either biotechnology or pharmaceuticals.
Expense Ratio 0.48%
1-Year / 3-year / 5-Year Annualized Returns 54.5% / 22.5% / 11.6%
Top 3 Holdings and Portfolio Weight Alexion Pharmaceuticals (8.9%)
Regeneron Pharmaceuticals (8.1%)
Amgen (7.8%)
Alternatives SPDR S&P Biotech
First Trust NYSE Arca Biotechnology Index
PowerShares Dynamic Biotech & Genome

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 93% of the 177 members who have rated iShares Nasdaq Biotechnology believe the ETF will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, ravens9111, tapped iShares Nasdaq Biotechnology as a particularly smart way to get into the space: "Playing individual biotech stocks is risky business. This is probably the least risky way to play the sector without taking a chance of waking up one morning to see the company's drug was rejected and opens down 50%+ on an FDA rejection."

Owning exceptional ETFs is a surefire way to secure your financial future. Of course, despite a strong four-star rating,  iShares Nasdaq Biotechnology may not be your top choice.

If that's the case, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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