The top five holdings of this fund are Acceleron Pharma Inc (XLRN, 4.02% of assets), Momenta Pharmaceuticals Inc (MNTA, 3.99%), Ultragenyx Pharmaceutical Inc (RARE, 3.10%), Regeneron Pharmaceuticals Inc (REGN, 2.79%), and United Therapeutics Corp (UTHR, 2.71%).
Virtus LifeSci Biotech Products ETF (BBP)
From Sound Advice
Biotechnology has become a major industry and the source of the world’s top breakthrough drugs. Biotech companies offer the most explosive profits in the healthcare industry. However, stocks of individual biotech companies are often volatile. Diversification is essential and can be accomplished by investing in a diversified biotech electronically traded fund (ETF) investing exclusively in a portfolio of biotech companies.
Virtus LifeSci Biotech Products is a passively managed biotech ETF that weighs the portfolio selections essentially equally, as opposed to weighing selections according to market capitalization.
This is an important aspect because biotech ETFs weighing their portfolio selections essentially equally have been the best performers by far because they have larger investments in smaller biotechnology companies which are acquisition targets for large pharmaceutical companies looking for ways to revitalize their drug portfolios by scooping up smaller companies.
Gray Cardiff, Sound Advice, www.soundadvice-newsletter.com, March 2020