New Trade for December 20th, 2021

Stocks sank in early trading following last week’s decline.  Investors are grappling with surging infection rates and an upcoming shift in Fed policy as the winter holiday season approaches.  Reopening trades were the biggest losers once again in pre-market trading.  High-priced tech stocks also continued to bleed. 

“On the one hand, corners of the market are oversold,” Adam Crisafulli, founder of Vital Knowledge, said in a note.  “However, the aggressive ‘buy the dip’ mentality, which proved so profitable for the last 1.5+ years, especially in high-multiple corners of the market, was underwritten by a tidal wave of stimulus that is now receding.”

Some investors are holding onto hope for a Santa Claus rally into the year’s end, but we’ve found a ticker that has significant potential for success, regardless of what’s happening elsewhere in markets.  

Many biotech companies are reasonably small startups.  This means if a successful product is developed (then revenues, then earnings), share prices can skyrocket.  This can happen regardless of headwinds and hurdles that could arise for the overall market.  

However, many investors who come to the biotech space to cash in on solid returns get burned by seemingly promising startups that only end up wasting investor capital in dead-end technologies.  One solution for investors looking to gain access to companies at the forefront of innovation through a diversified basket of biotech names is the First Trust NYSE Arca Biotechnology ETF (FBT).

FBT gives exposure to the best in biotech through its focused yet diversified list of 30 names, including giants such as Moderna (MRNA) and $5 billion Alkermes PLC (ALKS).   Without a specific sector classification scheme, the fund’s broad exposure could include access to pharmaceuticals and medical technology in addition to traditional biotech.  

FBT is one of a handful of biotech ETFs available, offering exposure to a corner of the market that can perform well during periods of consolidation and is capable of big jumps in the event of major drug approvals.   Though its equal-weighted methodology ensures that assets are balanced across all components, FBT’s portfolio is somewhat limited.  That feature can be vital in the biotech space, where specific companies can turn in significant gains over short periods.

First Trust NYSE Arca Biotechnology ETF (FBT) Data Summary

  • Weighted Average Market Cap  $30.19B
  • Price / Earnings Ratio   44.72
  • Price / Book Ratio  4.71
  • YTD Daily Total Return  -5.8%
  • Yield  0.00%
  • Expense Ratio  0.55%
  • Net Assets   1.93B
  • Number of Holdings  30
  • Top Holdings  BioNTech (BNTX), Alkernmans (ALKS), Moderna (MRNA)

Where to invest $1,000 right now...

Before you consider buying First Trust NYSE Arca Biotechnology ETF, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not First Trust NYSE Arca Biotechnology ETF.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...


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