For investors seeking momentum, VanEck Vectors Biotech ETF BBH is probably on the radar now. The fund just hit a 52-week high and is up about 32% from its 52-week low price of $103.25/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
BBH in Focus
BBH focuses on the biotechnology segment of the U.S. market and measures the performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. The fund has a large-cap focus with key holdings in Amgen AMG, Celgene CELG and Gilead Sciences GILD. It charges investors 35 basis points a year in fees (see: all the Healthcare ETFs here).
Why the Move?
The biotech corner of the broad healthcare sector has been an area to watch lately given the astounding performance this quarter. The flurry of positive news flow, including trial results and deal activities, and better-than-expected corporate earnings have fueled the rally in the sector. Additionally, uncertainty over trade deal added to the strength given that the sector is non-cyclical in nature, which provides a defensive tilt to the portfolio.
More Gains Ahead?
Currently, BBH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
VanEck Vectors Biotech ETF (BBH): ETF Research Reports
Celgene Corporation (CELG) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
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