Three Top Ways to Trade Biotech Heading into 2023

FILE PHOTO: Bottles of medications line the shelves at a pharmacy in Portsmouth

Investors may want to keep an eye on the biotech boom.

For one, the sector is still one of the safest, most recession-proof investments around.   Two, an aging population is demanding better treatment in an effort to live longer lives. Three, there’s the incredible new innovation in gene therapies, immune-oncology, precision medicine, machine-learning drug discovery, and treatments for unmet medical needs.  All of which are attracting millions of investors into the red-hot biotech space.

Some of those investment dollars are coming from the Biden Administration, for example.

As noted by

“President Joe Biden signed Executive Order 14081 that will build on and expand biotech-promoting policies of the Obama and Trump Administrations. President Biden’s September 12 Executive Order, Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy (EO 14081), is intended, inter alia, to “accelerate biotechnology innovation and grow America’s bioeconomy across multiple sectors, including a range of industries, including health, agriculture, and energy.”

With that, here are five ways to invest in the biotech story.

SPDR S&P Biotech ETF (XBI)

One of the best ways to diversify at less cost is with a biotech ETF, such as the SPDR S&P Biotech ETF (XBI).  With an expense ratio of 0.35%, the ETF offers exposure to the S&P Biotechnology Select Industry Index. Some of its top holdings include Biogen, Veracyte, Moderna, Gilead Sciences, Amgen, and Ver Biotechnology to name a few.

iShares NASDAQ Biotechnology ETF (IBB)

Other top biotech ETFs include the IBB ETF, which holds dozens of stocks, including Amgen, Vertex, Gilead Sciences, Illumina, Regeneron, and Biogen to name a few.  The IBB, which has an expense ratio of 0.44%, last traded at around $133.

ProShares Ultra NASDAQ Biotechnology (BIB)

Or, look at the Ultra NASDAQ Biotechnology ETF (BIB).  With an expense ratio of 0.95%, this $59 ETF holds stocks such as Codiak Biosciences, Tonix Pharmaceuticals, Molecular Templates, and Applied Therapeutics.