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Biotech ETFs: Best bets on health care reform

"Health care reform could mean opportunities for astute investors," says Brandon Clay in his Invest With an Edge.

Here, eyes two biotech ETFs that "should be on everyone's watch list." The advisor notes, "With health care on the front burner in Washington, these biotechnology ETFs may finally be ready to pop."

"Investors in health care should think outside the realm of traditional pharmaceutical companies and health insurers. Those sectors are each facing headwinds that make stock picking difficult.

"In addition, several big pharma companiesare desperate to reload their empty pipelines in the face of increased competition from generic drug makers.

Continue reading Biotech ETFs: Best bets on health care reform

Obama Picks: Fund expert's top ETFs

What sectors are poised to outperform as a result of a Barack Obama presidency? To find out, we turn to fund expert Jim Lowell who recent prepared a report highlighting the top ETFs based on each candidate.

In The Forbes ETF Trader, he offers several top picks including ETFs that are focused on biotechnology and medical research, industrials, clean environment and clean energy technologies.

"SPDR Biotech (ASE: XBI) seeks investment results that correspond to the price and yield performance of the S&P Biotechnology Select Industry Index which is made up of the biotechnology sector of the S&P Total Markets Index.

"It began trading in January 2006. The top ten holdings are Genentech, Amgen, Gilead Sciences, Celgene, Genzyme, Biogen Idec, Imclone, Cephalon, Vertex Pharmaceuticals, and Alexion Pharmaceuticals.

"Vanguard Industrials (NYSE: VIS) seeks investment results that correspond to the price and yield performance of the Morgan Stanley Capital International US Investable Market Industrials Index.

Continue reading Obama Picks: Fund expert's top ETFs

Bet on a biotech bull

"Bull markets have been few and far between this summer; one of the few sectors that looks to have re-entered a bull trend is biotechnology," says international investing expert Nick Vardy.

In his Global Bull Market Alert, he explains, "The S&P Biotech ETF (ASE: XBI) looks to capitalize on this traditionally highly volatile and boom bust burdened sector." Here's his bullish assessment.

"Why the sudden merger and acquisitions frenzy in biotech? Put simply, 'Big Pharma' is cash-rich but innovation-poor. As patents expire, the traditional pharmaceutical industry is eager to refill its emptying drug pipelines.

"On the one hand, Big Pharma hopes giant acquisitions jump start pharmaceuticals' sputtering innovation machines. On the other hand, existing biotech blockbusters would also hedge against the coming collapse in earnings from drugs that are coming off patent.

"So why buy biotech now? Technically, biotech is one of the few sectors in the market that are in an uptrend. And while the sector has sold off recently, we think it is a good time to get in.

"The best way to profit from the biotech bull is through the S&P Biotech ETF. Unlike some other market cap weighted biotech ETFs which heavily lean toward industry giants Genentech and Amgen, XBI holds about 25 of the top companies across the entire sector.

"Each company is equally weighted between 3-5% of the ETF. With an industry low expense ratio of 0.35%, it is also the bargain of the biotech ETF sector."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

New biotech bull? Bet on S&P Biotech ETF (XBI)

"Bull markets have been few and far between this summer; one of the few sectors that looks to have re-entered a bull trend is biotechnology," says international investing expert Nick Vardy.

In his Global Bull Market Alert, he explains, "The S&P Biotech ETF (ASE: XBI) looks to capitalize on this traditionally highly volatile and boom bust burdened sector." Here's his bullish assessment.

"Why the sudden merger and acquisitions frenzy in biotech? Put simply, 'Big Pharma' is cash-rich but innovation-poor.

"As patents on huge profit generators such as Pfizer's Lipitor expire, the traditional pharmaceutical industry is eager to refill its emptying drug pipelines.

"On the one hand, Big Pharma hopes giant acquisitions jump start pharmaceuticals' sputtering innovation machines. On the other hand, existing biotech blockbusters would also hedge against the coming collapse in earnings from drugs that are coming off patent.

Continue reading New biotech bull? Bet on S&P Biotech ETF (XBI)

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DJIA+20.0310,246.97
NASDAQ-2.982,151.08
S&P 500-0.071,093.01

Last updated: November 11, 2009: 06:23 AM

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