For investors seeking momentum, Virtus LifeSci Biotech Clinical Trials ETF (HM:BBC) is probably on radar now. The fund just hit a 52-week high and is up nearly 76% from its 52-week low price of $18.49/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:
BBC in Focus
This fund has a novel approach to biotechnology investing with exposure to companies that are in the clinical trial stage. It has a well-diversified portfolio of 74 stocks with key holdings in the hottest stock Juno Therapeutics (NASDAQ:JUNO) currently in the market. BBC charges 79 bps in fees per year from its investors (see: all the Healthcare ETFs here).
Why the Move?
The biotech segment of the broad equity market has been an area to watch lately given that the new tax legislation has enticed companies in this corner to bring offshore cash back home, leading to a wave of mergers and acquisitions. Additionally, the slower growth in mature drugs has compelled prominent biotechs to acquire smaller ones with promising pipelines. The latest catalyst is JUNO, which has agreed to be acquired by Celgene Corporation (NASDAQ:CELG) for $87 per share in cash, or $9 billion.
More Gains Ahead?
Currently, BBC has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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BIOSH-BIO CLNCL (BBC): ETF Research Reports
Celgene Corporation (CELG): Free Stock Analysis Report
Juno Therapeutics, Inc. (JUNO): Free Stock Analysis Report
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Zacks Investment Research
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Biotech ETF (BBC) Hits New 52-Week High
Published 01/22/2018, 09:22 PM
Updated 10/23/2024, 11:45 AM
Biotech ETF (BBC) Hits New 52-Week High
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