10 Best Biotechnology ETFs to Buy in 2025

The BBC ETF (BlackRock Balanced Capital ETF) is designed to provide investors with a balanced exposure to both equities and fixed income securities. The fund aims to achieve long-term capital appreciation while mitigating risk through diversification across asset classes. It typically invests in a mix of U.S. large-cap stocks and investment-grade bonds, offering a middle-ground approach for investors seeking growth and income. The ETF is managed by BlackRock, one of the world's largest asset managers, leveraging its extensive research and risk management capabilities. BBC is suitable for investors looking for a single-fund solution that balances growth potential with downside protection.

The ALPS Medical Breakthroughs ETF (SBIO) is an exchange-traded fund that focuses on small- and mid-cap biotechnology and pharmaceutical companies with one or more drugs in either Phase II or Phase III U.S. FDA clinical trials. The fund seeks to provide investors with exposure to innovative companies that are developing groundbreaking medical treatments. SBIO tracks the Poliwogg Medical Breakthroughs Index, which is designed to identify companies with significant potential for growth due to their involvement in late-stage clinical trials. The ETF offers a targeted approach to investing in the biotech sector, emphasizing firms that are closer to bringing new therapies to market.

The SPDR S&P Biotech ETF (XBI) seeks to provide investment results that correspond generally to the price and yield performance of the S&P Biotechnology Select Industry Index. This ETF offers exposure to the biotechnology sector, focusing on companies primarily involved in the use of biological processes to develop products or technologies for the healthcare, agricultural, and industrial markets. The fund is designed to track an equal-weighted index, which means each constituent holds a similar weight, providing diversified exposure across small, mid, and large-cap biotech firms. XBI is a popular choice for investors looking to gain targeted exposure to the biotech industry without having to pick individual stocks.

The LeaderShares AlphaFactor US Core Equity ETF (LFSC) is an actively managed ETF that seeks long-term capital appreciation by investing primarily in U.S. large-cap equity securities. The fund employs a multi-factor quantitative model that evaluates stocks based on factors such as value, momentum, quality, and low volatility. LFSC aims to outperform traditional market-cap-weighted benchmarks by dynamically adjusting its portfolio based on changing market conditions. The fund typically holds between 50-100 stocks and may adjust sector exposures based on its proprietary signals. LFSC is designed for investors seeking a rules-based, factor-driven approach to U.S. large-cap investing with the potential for enhanced risk-adjusted returns.

The Invesco Taxable Municipal Bond ETF (BBP) seeks to track the investment results of the ICE BofA US Taxable Municipal Securities Index. This ETF provides exposure to U.S. taxable municipal bonds, which are issued by state and local governments to fund public projects but are subject to federal income tax. BBP offers investors a way to access the taxable municipal bond market, which can provide higher yields compared to tax-exempt municipal bonds, particularly in environments where tax advantages are less impactful. The fund is designed for investors seeking income with relatively lower credit risk compared to corporate bonds, given the historically strong credit quality of municipal issuers.

The WisdomTree BioRevolution Fund (WDNA) is an ETF designed to provide investors with exposure to companies at the forefront of the biotechnology and genomics revolution. The fund focuses on firms involved in gene editing, synthetic biology, and other cutting-edge biotechnologies that are transforming healthcare, agriculture, and industrial applications. WDNA seeks to track the performance of the WisdomTree BioRevolution Index, which includes companies that derive significant revenue from bioengineering innovations. The ETF offers a targeted way to invest in the rapid advancements occurring in life sciences, with holdings spanning small, mid, and large-cap stocks globally.

The CANC ETF (Cancer Immunotherapy ETF) is designed to provide investors with exposure to companies focused on the development of cancer immunotherapy treatments. This ETF invests in biotechnology and pharmaceutical firms that are at the forefront of innovative therapies, including checkpoint inhibitors, CAR-T cell therapies, and other immuno-oncology advancements. The fund aims to capitalize on the growing demand for cutting-edge cancer treatments, which are becoming increasingly vital in modern medicine. By targeting this niche, CANC offers investors a way to participate in the potential growth of the immunotherapy sector, which is expected to expand significantly as new treatments gain regulatory approval and market adoption.

The First Trust NYSE Arca Biotechnology Index Fund (FBT) is an ETF that seeks to track the performance of the NYSE Arca Biotechnology Index. This index includes companies primarily involved in the biotechnology sector, focusing on firms engaged in research, development, manufacturing, and commercialization of biotechnology products. FBT provides investors with targeted exposure to the biotech industry, which is known for its high growth potential but also significant volatility. The fund is rebalanced quarterly and typically holds around 30-35 stocks, offering a concentrated yet diversified approach to biotech investing.

The Invesco Biotechnology & Genome Innovation ETF (IBBQ) is designed to provide investors with exposure to companies engaged in biotechnology and genome innovation. The fund seeks to track the performance of the Nasdaq Biotechnology and Genome Innovation Index, which includes companies involved in cutting-edge biotechnological research, genetic engineering, and therapeutic innovations. IBBQ focuses on firms that are at the forefront of scientific advancements, including those working on gene editing, personalized medicine, and next-generation therapeutics. The ETF offers a targeted approach to investing in the rapidly evolving biotech sector, making it suitable for investors seeking growth opportunities in this high-potential industry.

The iShares Nasdaq Biotechnology ETF (IBB) seeks to track the investment results of the Nasdaq Biotechnology Index, which is composed of biotechnology and pharmaceutical companies listed on the Nasdaq. The fund provides exposure to a broad range of biotech firms, from large-cap established players to smaller, innovative companies. IBB is one of the largest and most liquid ETFs in the biotech sector, making it a popular choice for investors seeking diversified exposure to this high-growth industry. The fund's holdings include companies involved in drug development, genetic research, and medical technology, offering investors a way to participate in advancements in healthcare and life sciences.