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