3. ALPS Medical Breakthroughs ETF (SBIO)
With net assets of $140.54 million, this is the smallest and riskiest of our three biotech ETFs.
The ALPS Medical Breakthroughs ETF seeks results that correspond to the performance of its underlying index, the Poliwogg Medical Breakthroughs Index, which is made up of small- and mid-cap stocks of biotech and pharmaceutical companies that have one or more drugs in either Phase II or Phase III FDA clinical trials.
The fund emphasizes "game-changing" entrepreneurial companies. These are small- and mid-cap biotech rocket stocks that are poised to take off. They have a market cap of not less than $200 million and not more than $5 billion. The earlier-stage firms in the ALPS Medical Breakthrough ETF's underlying index, the Poliwogg Medical Breakthroughs Index, devoted more of their combined market caps to research and development than the components of the Nasdaq Biotech index did.
Top holdings of these ETFs include Seattle Genetics, Dyax, Anacor Pharmaceuticals, Neurocrine Biosciences and Ultragenyx Pharmaceutical. Expense ratio: 0.50%.
The ALPS Medical Breakthoughs ETF is down 21% year to date the sharpest decline of our three choices. This only makes sense because it's the riskiest. Over the past three months, SBIO has gained 9%.
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