The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) has experienced growth of 134% in a 5 year period. It has increased 17.36% in 2017 as of August 16. Biotechnology is one of the fastest growing sectors of the U.S. economy and is still heavily reliant on public markets to finance pharmaceutical development plans. The term biotechnology refers to the research and development of novel pharmaceutical compounds. These firms differentiate themselves from established pharmaceutical companies because of the focus on research-and-development. Stocks are still subject to explosive growth but do not pay the dividends of big firms.
North America is facing a huge demographic transformation. The baby boomer generation is going to produce an elderly population that will make up the largest proportion of the total that our nations have ever seen. Investments in biotechnology promise to be ramped up in light of these ongoing trends. This generation will also be the beneficiaries of the largest transfer of wealth in history, providing them the disposable income to spend on pharmaceuticals to extend and improve life.
As of 2pm on Wednesday, August 16 the stock is priced at $310.50. The share price has declined 1.56% month-over-month giving investors a chance to jump into the ETF. It is important to note that geopolitical tensions have shaken the stock market of late. New tax legislation is expected to be introduced by the Trump administration in the near future in an attempt to bring it through the House and Senate.