Hi there,
I'm very excited to join this community. I've recently published an actionable guide on how to pick the right biotech ETF for your portfolio in which I discuss the peculiarities of the biotech sector and key indicators for evaluating ETFs in this space.
Highlights
Why this sector is booming:
- The customer base is growing. The postwar Baby Boom generation is aging and consuming more health care.
- The Affordable Care Act (ObamaCare) healthcare reform program in the US expanded the number of people with health insurance, allowing many to use expensive drugs for the first time.
- Possibly the greatest reason is simply timing. The Human Genome Project decoded our genetic makeup and gave scientists huge amounts of new data in the early 2000s.
Key indicators for evaluating biotech ETFs
- Size. Look at “assets under management” or “net assets.” Bigger ETFs can keep costs down by spreading expenses over a larger base.
- Age. ETFs first hit the market in the 1990s, but it took about a decade before sector ETFs started to appear.
- Fees. A well-run ETF should have an expense ratio below 1%. Many are even lower.
- Stock Selection. Most ETFs track an index. Some indexes are static and rarely change their holdings.
You can find the article here: http://www.mauldineconomics.com/resources/how-to-pick-the-right-biotech-etf
I really hope you'll find it useful. Looking forward to your thoughts/feedback.
I'm very excited to join this community. I've recently published an actionable guide on how to pick the right biotech ETF for your portfolio in which I discuss the peculiarities of the biotech sector and key indicators for evaluating ETFs in this space.
Highlights
Why this sector is booming:
- The customer base is growing. The postwar Baby Boom generation is aging and consuming more health care.
- The Affordable Care Act (ObamaCare) healthcare reform program in the US expanded the number of people with health insurance, allowing many to use expensive drugs for the first time.
- Possibly the greatest reason is simply timing. The Human Genome Project decoded our genetic makeup and gave scientists huge amounts of new data in the early 2000s.
Key indicators for evaluating biotech ETFs
- Size. Look at “assets under management” or “net assets.” Bigger ETFs can keep costs down by spreading expenses over a larger base.
- Age. ETFs first hit the market in the 1990s, but it took about a decade before sector ETFs started to appear.
- Fees. A well-run ETF should have an expense ratio below 1%. Many are even lower.
- Stock Selection. Most ETFs track an index. Some indexes are static and rarely change their holdings.
You can find the article here: http://www.mauldineconomics.com/resources/how-to-pick-the-right-biotech-etf
I really hope you'll find it useful. Looking forward to your thoughts/feedback.
