While bioscience stocks were taking a nosedive over the past 12 months, these five life science ETFs were actually on the rise.
Life sciences ETFs offer diversification rather than individual stocks, though managers sometimes focus on a specific sector of the market, such as biotechnology or pharmaceuticals. In addition, they often adjust their holdings to maximize returns.
Here are the five life sciences ETFs that have risen in the past year (data collected on January 11, 2024) :
1. $Spdr S&P Biotech Etf(XBI)$
Increase over the past year: 10.73%
The SPDR Biotech ETF, created in 2006, tracks the performance of the S&P Biotechnology Select Industry Index and switches to U.S. stocks. The fund has an expense ratio of 0.35%, a five-year yield of 2.8% and a yield of 29.14% over the past three months.
XBI's total asset management scale (AUM) exceeds $7.29 billion, with 123 holdings of mid-cap stocks accounting for 41.74% and small-cap stocks for 39.27%. Its top holdings include $Cytokinetics(CYTK)$ $Karuna Therapeutics(KRTX)$ $Arrowhead Pharmaceuticals(ARWR)$.
2. $iShares Global Healthcare ETF(IXJ)$
Increase over the past year: 7.36%
The iShares Global Healthcare ETF invests in life science companies across the globe (Europe and Asia Pacific), but U.S. companies still dominate. Founded in 2001, the fund has an expense ratio of 0.42%, a five-year yield of 10.64%, and a yield of 8.49% over the past three months.
IXJ has total assets under management of more than $4.14 billion and holds 115 shares. Its top holdings include $Eli Lilly(LLY)$ $UnitedHealth(UNH)$ $Johnson & Johnson(JNJ)$.
3. $ARK Genomic Revolution Multi-Sector ETF(ARKG)$
Increase over the past year: 6.65%
The ARK Genomic Revolution ETF was launched in 2014 and has total assets under management of nearly $2.2 billion. The fund has a five-year yield of 4.44% and a return of 23.16% over the past three months.
With an ARKG expense ratio of 0.75% and only 42 holdings, it is much smaller than the other ETFs on this list. Its top holdings include $Exact Sciences(EXAS)$ $CRISPR Therapeutics AG(CRSP)$ $Recursion Pharmaceuticals, Inc.(RXRX)$.
4. $Health Care Select Sector SPDR Fund(XLV)$
Increase over the past year: 6.54%
The Health Care Select Sector SPDR Fund holds 65 with total assets of more than $39.6 billion. According to ETFdb.com, the ETF is one of the most popular U.S. healthcare sector funds and invests mainly in medical technology and large pharmaceutical companies, so it is more suitable for investors with a relatively low appetite for risk.
Its top holdings include $Eli Lilly(LLY)$ $UnitedHealth(UNH)$ $Johnson & Johnson(JNJ)$, has a five-year yield of 12.02% and a yield of 8.54% over the past three months.
5. $Vanguard Health Care ETF(VHT)$
Increase over the past year: 6.32%
The Vanguard Health Care Index Fund ETF has 419 holdings across a wide range of industries, including $Johnson & Johnson(JNJ)$ $UnitedHealth(UNH)$ $Pfizer(PFE)$.
The ETF has a low expense ratio of 0.1%, $17.13 billion in assets under management, a five-year return of 11.2%, and a return of 9.32% over the past three months.
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