Why I’m Buying This Biotech ETF Today

The health care space has proven to be one of the more explosive opportunities for investors in the post-Great Recession era. Indeed, its growth trajectory has been second only to the red-hot technology space in North America and around the world. In this piece, I want to focus on an exchange-traded fund (ETF) that can offer exposure to this exciting market in 2023 and beyond.

Vantage Market Research valued the global biotechnology market at US$1.09 trillion in 2022. The same report projected that this market would achieve a compound annual growth rate (CAGR) of 14% over the forecast period stretching from 2023 through to 2030. That should pique the interest of investors who are on the outside looking in at the biotechnology sector.

BlackRock iShares Biotechnology ETF (NASDAQ:IBB) is the exchange-traded- fund that I’d look to snatch up for exposure to this exciting space. The iShares Biotechnology ETF seeks to track the investment results of an index composed of U.S.-listed equities in the biotechnology sector. Shares of this ETF have moved up marginally month-over-month as of early afternoon trading on June 30. Meanwhile, the ETF is still down 2.1% so far in 2023.

Some of the top holdings in this fund include familiar names like Moderna, which was one of the main manufacturers of the COVID-19 vaccine. Its top three holdings are Vertex Pharmaceuticals, Amgen, and Gilead Sciences.