One area of the market where stocks can be found to produce 10x, even 20x returns, regardless of what’s happening elsewhere, is biotech. Looking at the performance of the past ten years, if the biotechnology industry were a sector, it would be the best performing one. Over the past decade, biotech stocks have returned 524%. That beats every last sector, it beats the broader health care sector by 200 percentage points, and it’s nearly double the S&P 500’s total return in that same time frame.
Specifically, genomics is one niche within the biotech group that could offer unimaginable returns. Still, the technology is so new and complex that many investors shy away from companies making astounding advancements.
There’s clearly money to be made in the discovery of new treatments for anything from the flu to cancer. But genomics stocks carry substantial risk. While positive data from a trial could send their stocks soaring, a setback or failure can crush their returns, making them difficult buy-and-hold investments.
Today we’re highlighting a rare, buy-and-hold genomics investment that provides ground floor access to the innovators of tomorrow, along with their potential nose-bleed returns, while minimizing risk.
One solution for anyone who wants to benefit from genomics advancements but lacks the expertise needed to evaluate individual companies from the group confidently is to delegate individual stock picking to the professionals. In today’s trade, we’ll focus on an exchange-traded fund (ETF) that provides an opportunity for investors seeking access to companies at the forefront of genomics innovation.
iShares Genomics Immunology and Healthcare ETF (IDNA) holds a concentrated portfolio of global companies in the biopharmaceutical and healthcare equipment and services industries that could benefit from the long-term growth and innovation in genomics immunology and bioengineering. The fund is passively managed, and holdings are weighted by market cap and are constrained such that no individual security exceeds the 4% weight of the portfolio. The index rebalances semi-annually.
It’s worth noting that IDNA beat Cathie Woods’ ARK Genomic Revolution ETF (ARKG) in the first ten weeks of 2020 when global markets were rocked by the coronavirus outbreak and investors were eagerly hunting for potential profit in companies researching treatment and vaccines.
iShares Genomics Immunology and Healthcare ETF (IDNA)
- Weighted Average Market Cap $42.71B
- Price / Book Ratio 2.46
- YTD Return – 29%
- Yield 0.88%
- Expense Ratio 0.47%
- Net Assets 188.04M
- Number of Holdings 50
Should you invest in IDNA right now?
Before you consider buying IDNA, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not IDNA.
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...