By now, many investors have probably heard enough about CRISPR (clustered regularly interspaced short palindromic repeats) to be relatively familiar with the idea. But some may not be familiar with the exchange-traded funds (ETFs) tracking gene-editing stocks. CRISPR ETFs own the stocks of companies focusing on CRISPR gene editing.
Gene-editing technology has the potential to change the treatment of many diseases by modifying DNA to correct mutations. CRISPR could even cure diseases in some cases. The ETFs that own the best CRISPR stocks could be big winners for investors over the long run.
Best CRISPR and gene-editing ETFs
Quite a few biotech ETFs are available for investors to buy. The number of CRISPR and gene-editing ETFs, however, is more limited. Here are the top five ETFs that focus on CRISPR gene editing.
ETF and Ticker | Expense Ratio |
|---|---|
ARK Genomic Revolution ETF (NYSEMKT:ARKG) | 0.75% |
Global X Genomics & Biotechnology ETF (NASDAQ:GNOM) | 0.5% |
Invesco Dynamic Biotechnology & Genome ETF (NYSEMKT:PBE) | 0.58% |
iShares Genomics Immunology and Healthcare ETF (NYSEMKT:IDNA) | 0.47% |
Wisdom Tree BioRevolution Fund (BATS:WDNA) | 0.45% |
1. ARK Genomic Revolution ETF
ARK Genomic Revolution ETF is one of several ETFs established by Cathie Wood's ARK Invest. It's an actively managed ETF that focuses on companies that stand to benefit from incorporating genomics into their businesses.
Although the fund isn't limited to CRISPR and genome-editing stocks, there are several in its portfolio. The ETF's second-largest holding is CRISPR Therapeutics (CRSP +0.04%), which is a pioneer in CRISPR gene editing.
ARK Genomic Revolution ETF also owns shares of other drugmakers with CRISPR therapies in development or on the market, including Beam Therapeutics (BEAM +1.80%), Intellia Therapeutics (NTLA +1.38%), Regeneron Pharmaceuticals (REGN +0.20%) (which is partnering with Intellia), and Vertex Pharmaceuticals (VRTX +0.99%).
Vertex and CRISPR Therapeutics won U.S. Food and Drug Administration (FDA) approval for CRISPR gene-editing therapy Casgevy in December 2023 as a treatment for sickle cell disease. The two partners followed up in January 2024 by securing FDA approval for the therapy in treating transfusion-dependent beta-thalassemia.
4. iShares Genomics Immunology and Healthcare ETF
The iShares Genomics Immunology and Healthcare ETF attempts to track an index of companies in developed and emerging markets that focus on genomics, immunology, and bioengineering. It currently owns positions in 44 pharmaceutical and biotech stocks.
This ETF's holdings include four previously mentioned stocks with CRISPR gene-editing ties that are owned by the other ETFs on the list: CRISPR Therapeutics, Beam Therapeutics, Intellia Therapeutics, and Regeneron Pharmaceuticals.
5. WisdomTree BioRevolution Fund
The WisdomTree BioRevolution Fund seeks to track the performance of an index consisting of companies that "will be significantly transformed by advancements in genetics and biotechnology." Like the other ETFs discussed, it doesn't limit itself to only CRISPR or gene-editing stocks.
This fund owns several CRISPR gene-editing stocks that are in the previously mentioned portfolios: Beam Therapeutics, CRISPR Therapeutics, Gilead Sciences, Intellia Therapeutics, Regeneron Pharmaceuticals, Vertex Pharmaceuticals, and Verve Therapeutics. It also owns shares of AstraZeneca (AZN +0.47%) and Caribou Biosciences (CRBU +3.31%), both of which are developing CRISPR gene editing therapies.
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Pros and cons of investing in CRISPR ETFs
The pros of investing in CRISPR ETFs include:
- Significant long-term potential for CRISPR technology
- Diversification across multiple stocks focused on CRISPR gene editing
- Less research is required than trying to select individual CRISPR stocks
However, there are some cons of investing in these ETFs as well, including:
- High risk and volatility
- Relatively high expense fees
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