Biotech companies contribute significantly to the development of the health sector. But investing in biotech companies has its fair share of risk. They can be profitable when milstones are achieved but catastrophic when something goes wrong. Through an ETF, an investor has a safer entry into the biotech space where risk and reward is shared across a long list of other companies in the sector. This ETF has 137 biotech companies in its holdings.
We are looking at adding the SPDR biotech ETF in our portfolio for the long-haul.