What biotech ETF is best?

Different investors could find different biotech ETFs more attractive than others. The biggest biotech ETF based on assets under management is the iShares Biotechnology ETF (NASDAQ:IBB).

Is there a Vanguard biotech ETF?

No, Vanguard does not currently offer an ETF that focuses specifically on biotechnology. The closest thing to a biotech ETF in the Vanguard family is the Vanguard Health Care ETF (NYSEMKT:VHT), which does own some biotech stocks.

Is there a small-cap biotech ETF?

There are no ETFs that exclusively focus on small-cap biotech stocks. However, some ETFs do primarily own small-cap, micro-cap, and mid-cap biotech stocks, including the AdvisorShares Psychedelics ETF (NYSE: PSIL).

Does Schwab have a biotech ETF?

No, Charles Schwab (NYSE:SCHW) doesn't currently manage a biotech ETF. However, some of its ETFs do include biotech stocks among their holdings.

Do biotech ETFs pay dividends?

Yes, some biotech ETFs do pay dividends. However, their dividend yields tend to be relatively small.

What are the signs of a high-quality biotech ETF?

Signs of a high-quality biotech ETF include significant assets under management, a track record of solid performance, and low expense ratios.

Should I invest in biotech ETFs for retirement?

Whether or not to invest in biotech ETFs for retirement depends largely on your risk tolerance and how long you have until you retire. The higher your risk tolerance and the longer you have until retirement, the better biotech ETFs could be a fit for you. If you do invest in biotech ETFs for retirement, though, it's probably best to make them a relatively small part of your overall portfolio because of their risk and volatility.

Best Biotech ETFs to Buy in 2026

Here are the five best biotech ETFs to invest in right now.

By Keith Speights – Updated Apr 11, 2026 at 5:29 PM EST | Fact-checked by Frank Bass

Key Points

Biotech ETFs allow diversified investment in many biotech companies, reducing individual stock risks.
Top biotech ETFs have significant assets and low expense ratios, offering potentially stable investments.
Biotech ETFs are suitable for investors with high risk tolerance, targeting long-term growth.

Biotech ETFs (exchange-traded funds) hold the stocks of companies in the biotech sector. Hundreds of biotech companies are hard at work developing innovative therapies. Some could even be game changers in preventing and treating diseases.

Want to invest in an exciting and fast-growing sector? Biotech ETFs offer an easy way to do so.

Loading paragraph...

Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

Loading definition...

You could buy individual biotech stocks. The downside, though, is that many of them are very risky. Biotech ETFs help you lower your risk and portfolio volatility.

Top biotech ETFs to consider

The best biotech ETFs tend to be the biggest ones. They have large amounts of assets under management and relatively low expense ratios. Here are five of the best biotech ETFs.

1. iShares Biotechnology ETF

Loading paragraph...

NASDAQ: IBB

iShares Trust - iShares Biotechnology ETF

Today's Change

(2.75%) $4.56

Current Price

$170.49

Key Data Points

Day's Range

$166.10 - $171.29

52wk Range

$123.61 - $179.64

Volume

1.5M

Loading company_card...

Loading paragraph...

NYSEMKT: XBI

SPDR Series Trust - SPDR S&P Biotech ETF

Today's Change

(3.02%) $3.89

Current Price

$132.74

Key Data Points

Day's Range

$128.45 - $133.42

52wk Range

$80.90 - $139.19

Volume

10.2M

Loading company_card...

Total assets: $8.5 billion
Expense ratio: 0.35%
Dividend yield: 0.33%

The SPDR S&P Biotech ETF (XBI +3.02%) seeks to track the S&P Biotechnology Select Industry Index. The index uses a modified equal weighting, meaning the percentage of total assets each stock holds is roughly the same. It gives investors exposure to large-, mid-, and small-cap biotech stocks.

The ETF currently owns more than 150 stocks. Its top holdings include:

Apellis Pharmaceuticals (NASDAQ:APLS)
Alkermes PLC (ALKS +2.46%)
TG Therapeutics (TGTX +3.07%)
Madrigal Pharmaceuticals (MDGL +0.63%)
Scholar Rock Holding (SRRK +1.36%)

However, because of its modified equal weighting, none of the ETF's largest positions account for a significantly greater percentage of assets than other stocks.

The SPDR S&P Biotech ETF has delivered a total annualized return of almost 11% since its inception in 2006. Over the past five years, however, the fund generated an average annual return of-1.1%.

Loading paragraph...

3. Ark Genomic Revolution ETF

NYSEMKT: ARKG

Ark ETF Trust - Ark Genomic Revolution ETF

Today's Change

(2.44%) $0.80

Current Price

$33.65

Key Data Points

Day's Range

$32.48 - $33.69

52wk Range

$22.73 - $37.30

Volume

3.2M

Loading company_card...

Total assets: $1.3 billion
Expense ratio: 0.75%
Dividend yield: 0%

The Ark Genomic Revolution ETF (ARKG +2.44%) is one of several exchange-traded funds operated by Cathie Wood's Ark Invest. The fund invests in the stocks of companies that incorporate genomics into their businesses. It focuses on gene-editing stocks, molecular diagnostics stocks, virtual care stocks, and companies developing targeted therapeutics.

The ETF typically owns between 40 and 60 stocks. Its current top positions include:

CRISPR Therapeutics (CRSP +1.60%)
Twist Bioscience (TWST +9.27%)
Tempus AI (TEM +0.22%)
10x Genomics (TXG -0.21%)
Beam Therapeutics (BEAM -0.27%)

The Ark Genomic Revolution ETF began trading in 2014. As of April 2026, it had generated an average annual return of around 3.2%. Over the past five years, the ETF's annualized return has been -21.4%.

Loading paragraph...

4. First Trust NYSE Arca Biotechnology Index Fund

NYSEMKT: FBT

First Trust Exchange-Traded Fund - First Trust Nyse Arca Biotechnology Index Fund

Today's Change

(1.93%) $4.29

Current Price

$227.24

Key Data Points

Day's Range

$224.27 - $228.29

52wk Range

$157.51 - $229.39

Volume

27.4K

Loading company_card...

Total assets: $2.3 billion
Expense ratio: 0.54%
Dividend yield: 0%

The First Trust NYSE Arca Biotechnology Index Fund (FBT +1.93%) seeks to track the performance of the NYSE Arca Biotechnology Index. The index holds equal weights in a cross-section of biotech companies, including those focused on genomics and the development of monoclonal antibody-based technologies.

The ETF currently has 30 positions. Its top holdings in April 2026 included:

Moderna (MRNA +7.94%)
United Therapeutics (UTHR +0.24%)
Alkermes
Gilead Sciences
Axsome Therapeutics (AXSM +3.02%)

Since its inception in 2006, the ETF has achieved an average annual total return of 12.5%. Over the past five years, the fund generated an annualized return of 4.8%.

Loading paragraph...

5. VanEck Biotech ETF

NASDAQ: BBH

VanEck ETF Trust - VanEck Biotech ETF

Today's Change

(2.62%) $4.80

Current Price

$187.88

Key Data Points

Day's Range

$184.57 - $188.68

52wk Range

$150.18 - $202.91

Volume

6.2K

Loading company_card...

Total assets: $376 million
Expense ratio: 0.35%
Dividend yield: 0.48%

The VanEck Biotech ETF (BBH +2.62%) tries to own the most liquid biotech companies based on market cap and trading volume. As such, its approach tends to favor the biggest companies in the biotech sector. The ETF's portfolio can include U.S. and foreign companies listed on U.S. stock exchanges.

The ETF owned 25 biotech stocks in April 2026. Its top holdings include:

Gilead Sciences
Amgen
Vertex Pharmaceuticals
Regeneron Pharmaceuticals
Argenx (ARGX +4.11%)

The VanEck Biotech ETF was launched on Dec. 20, 2011. Since then, the fund has generated an annualized total return of about 12.8%. Over the past five years, the ETF's average annual return was close to 1.9%.

Loading paragraph...

How to buy a biotech ETF

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the biotech ETF: Enter the ticker “[ticker]” into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Loading paragraph...

Benefits and risks of investing in biotech ETFs

The benefits of investing in biotech ETFs include:

Diversification. Biotech ETFs own many biotech stocks. This reduces the risk of one big loser dragging down your returns.
Professional management. The biotech industry is complicated. Investing in biotech ETFs gives you access to professional managers who know the industry well.
Liquidity. Some individual biotech stocks aren't heavily traded. To sell these stocks quickly, you might have to accept a lower price. The larger biotech ETFs allow you to avoid this liquidity risk.

However, there are also several potential risks associated with investing in biotech ETFs, such as:

Overexposure to one sector. If you invest too heavily in biotech ETFs, your overall returns could be lower during periods when biotech stocks are out of favor.
Volatility. Biotech ETFs can be highly volatile because biotech stocks are often highly volatile.
Less control. Biotech ETFs could own biotech stocks that you don't like. Buying these funds reduces your control over your investments.

Loading paragraph...

Should you invest in biotech ETFs?

Investors with a low tolerance for risk and volatility probably shouldn't invest in biotech ETFs. Like the individual biotech stocks that they own, biotech ETFs can be highly volatile. Income investors will also likely find better alternatives, since the dividend yields of biotech ETFs tend to be low (or nonexistent).

On the other hand, more aggressive investors with high risk tolerances could find biotech ETFs quite appealing. They offer a convenient way to invest in a basket of biotech stocks in one fell swoop. Over the long term, biotech ETFs could generate market-beating returns.

Loading paragraph...

FAQ

Biotech ETFs FAQ

Loading faq...

About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

TMFFishBiz

Keith Speights has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Alkermes Plc, Alnylam Pharmaceuticals, Amgen, CRISPR Therapeutics, Corcept Therapeutics, Gilead Sciences, Guardant Health, Iqvia Holdings, Krystal Biotech, Mirum Pharmaceuticals, Moderna, Regeneron Pharmaceuticals, Twist Bioscience, and Vertex Pharmaceuticals. The Motley Fool recommends BioNTech Se and SPDR Series Trust - SPDR S&P Biotech ETF. The Motley Fool has a disclosure policy.

Best Biotech ETFs to Buy in 2026

Here are the five best biotech ETFs to invest in right now.

Key Points

Top biotech ETFs to consider

1. iShares Biotechnology ETF

Key Data Points

Key Data Points

3. Ark Genomic Revolution ETF

Key Data Points

4. First Trust NYSE Arca Biotechnology Index Fund

Key Data Points

5. VanEck Biotech ETF

Key Data Points

How to buy a biotech ETF

Benefits and risks of investing in biotech ETFs

Should you invest in biotech ETFs?

Related investing articles

Best Marijuana Stocks for 2026 and How to Invest

Best Psychedelic Stocks to Buy in 2026 and How to Invest

Best Biotech Stocks to Buy in 2026 and How to Invest in Them

Best Healthcare Stocks to Buy in 2026 and How to Invest in Them

FAQ

Biotech ETFs FAQ

What biotech ETF is best?

What biotech ETF is best?

Is there a Vanguard biotech ETF?

Is there a Vanguard biotech ETF?

Is there a small-cap biotech ETF?

Is there a small-cap biotech ETF?

Does Schwab have a biotech ETF?

Does Schwab have a biotech ETF?

Do biotech ETFs pay dividends?

Do biotech ETFs pay dividends?

What are the signs of a high-quality biotech ETF?

What are the signs of a high-quality biotech ETF?

Should I invest in biotech ETFs for retirement?

Should I invest in biotech ETFs for retirement?

About the Author

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Top biotech ETFs to consider

1. iShares Biotechnology ETF

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

How to buy a biotech ETF

Benefits and risks of investing in biotech ETFs

Should you invest in biotech ETFs?

Best Marijuana Stocks for 2026 and How to Invest

Best Psychedelic Stocks to Buy in 2026 and How to Invest

Best Biotech Stocks to Buy in 2026 and How to Invest in Them

Best Healthcare Stocks to Buy in 2026 and How to Invest in Them

Biotech ETFs FAQ

What biotech ETF is best?

What biotech ETF is best?

Is there a Vanguard biotech ETF?

Is there a Vanguard biotech ETF?

Is there a small-cap biotech ETF?

Is there a small-cap biotech ETF?

Does Schwab have a biotech ETF?

Does Schwab have a biotech ETF?

Do biotech ETFs pay dividends?

Do biotech ETFs pay dividends?

What are the signs of a high-quality biotech ETF?

What are the signs of a high-quality biotech ETF?

Should I invest in biotech ETFs for retirement?

Should I invest in biotech ETFs for retirement?

2. SPDR S&P Biotech ETF