ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • 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
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Biotech Maintains Disruptive Capabilities
Beyond Basic Beta Channel
Share

Biotech Maintains Disruptive Capabilities

Tom LydonAug 18, 2023
2023-08-18

In what feels like an eternity in biotechnology terms, broader baskets of the industry’s stocks haven’t outperformed the S&P 500 Health Care Index annually since 2020.

That streak could end this year, but biotech stocks and ETFs still aren’t on fire. This concerns some market observers at a time when growth stocks are soaring. That sentiment belies opportunity with exchange traded funds such as the VanEck Biotech ETF (BBH B-).

The $478.45 million BBH, which turns 12 years old in December, is basically flat this year. That lethargy may give investors pause about accessing biotechnology stocks or ETFs. Or, it could imply that those assets lack the innovative zeal that made them favorites of growth investors in years past.

Regarding the second point, biotech, including some BBH member firms, remains a hotbed of innovation. It’s one of the premier growth corners of the broader healthcare sector. In other words, the long-term potential of biotech stocks and BBH remains intact.

BBH Headwinds Could Dissipate

Over the past year, the Inflation Reduction Act has been one of the drags on biotech equities and ETFs. That legislation, which recently turned a year old, includes provisions that would lower prices paid by Medicare and other federal buyers on select popular pharmaceuticals. In a recent mid-year biotech update, RBC Capital Markets analysts note that some biotech companies are fighting those provisions in court and that it’s possible those guidelines could be altered following the 2024 elections.

Those are longer-ranging issues, but over the near term, it’s worth noting biopharma firms, including some BBH components, are making progress in areas such as weight-loss therapies, among others.

“In addition to the dramatic weight loss achieved by the drugs, the GLP-1s may also reduce cardiovascular and liver disease. The resulting public-health gains would be wonderful. But they might also affect the prospects for other drugs sold to treat illnesses. That includes the liver disease called nonalcoholic steatohepatitis, or NASH,” reports Bill Alpert for Barron’s.

Gene editing is another long-term growth driver for the biotech industry. It should not be glossed over by investors considering BBH.

“Another promising breakthrough are gene-editing therapies, the one-time treatments that use the Nobel Prize-winning technology known as CRISPR to blunt genetic illnesses permanently. Intellia Therapeutics (NTLA) and Verve Therapeutics (VERV) are testing such approaches as treatments for nerve and heart disorders that otherwise require continuing doses of medicines sold by other biotech companies,” according to Barron’s.

Intellia is one of BBH’s smaller holdings and has previously been rumored to be a potential takeover target.

For more news, information, and analysis, visit the Beyond Basic Beta Channel.


Content continues below advertisement

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
  • © 2025 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