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