ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Disruptive Technology Channel
  2. Why a Biotech ETF Might Cure Your 2023 Portfolio
Disruptive Technology Channel
Share

Why a Biotech ETF Might Cure Your 2023 Portfolio

Nick Peters-GoldenDec 07, 2022
2022-12-07

While the headlines have focused on a crypto winter, it hasn’t exactly been an easy year for biotech. The sector that blossomed amid a global pandemic has struggled with the pandemic easing and rates rising. But with a recession looming for equities overall, innovations accessible in a biotech ETF for 2023 like the ARK Genomic Revolution ETF (ARKG A-) could buoy investors’ portfolios in the new year.

Traditionally, health and healthcare-related sectors have been defensive plays in difficult times. That appears to be happening again as asset managers look at the space for 2023, which could have knock-on benefits for biotech.

But more importantly, even as the sector takes a step back from 2021’s highs, biotech firms haven’t stopped innovating. There are serious breakthroughs and product approvals just on the horizon from some of biotech’s biggest names, which could help equity portfolios available next year in a biotech ETF like ARKG.

For example, one of the most notable biotech names, Crispr Therapeutics (CRSP), has taken some real losses this year, but is approaching commercialization for its first gene-editing treatment. The firm’s submission of its exa-cel blood disorder gene treatment to regulators in the U.S. is expected to be completed in Q1 next year.

The treatment would be a big addition to a limited set of options for people facing sickle cell disease, and a big win for CRSP and its gene-editing work. Another firm, Teladoc (TDOC), has seen paid U.S. members and revenue per member grow each quarter this year, and it may be well positioned for this winter’s serious spread of respiratory viruses on top of flu season.

Furthermore, Amazon (AMZN) launched its Amazon Omics service earlier this week, a data analytics and bioinformatics workflows hub that could benefit all kinds of biotech firms.

ARKG holds both of these securities at respectable weights, with TDOC the fourth-largest at 4.4% and CRSP at 3.8%. The actively-managed ETF looks for those firms that will benefit from serious innovations in areas like genetics and molecular diagnostics, and charges a 75 basis point fee. With other equities under pressure, investors looking for a biotech ETF for 2023 that focuses on innovation may want to keep an eye on ARKG as we enter the new year.

For more news, information, and analysis, visit the Disruptive Technology Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X