Biotech ETF (IBB) Hits a New 52-Week High
For investors seeking momentum, iShares Nasdaq Biotechnology ETF IBB is probably on radar. The fund just hit a 52-week high, and is up about 49% from its 52-week low price of $92.15/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:
IBB in Focus
IBB offers exposure to U.S. biotechnology and pharmaceutical companies. Biotechnology takes the largest share at 80% while life sciences tools & services, and pharmaceuticals round off the next two spots. The fund charges investors 47 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 positive developments in coronavirus vaccines. Two of the potential COVID-19 vaccines from Pfizer PFE and its partner BioNTech received fast track designation from the U.S. health agency thereby speeding up the regulatory review process.
More Gains Ahead?
Currently, IBB has a Zacks ETF Rank #1 (Strong Buy) with a High 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pfizer Inc. (PFE) : Free Stock Analysis Report
iShares Nasdaq Biotechnology ETF (IBB): ETF Research Reports
To read this article on Zacks.com click here.
