Michael Wagner in U.S. News & World Report: Biotech ETFs

Navigating the biotech sector can be daunting due to its high-risk, high-reward nature. This crucial part of the healthcare sector is divided into equipment and services, pharmaceuticals and biotechnology. The latter, often referred to as biotech, involves companies developing investigational treatments with potential remarkable returns upon approval.

In a recent U.S. News & World Report article, Michael Wagner, co-founder and chief operating officer of Omnia Family Wealth, offered valuable insights into the world of biotech ETFs to help investors make informed decisions.

Wagner believes investing in a biotech ETF can provide ways to mitigate the risks associated with investing in individual companies. He recommends using ETFs to gain exposure to the sector, and one of his top picks is the SPDR S&P Biotech ETF (XBI), stating, “If I were to invest specifically in this space using a liquid instrument like an ETF, I would prefer XBI,” says Wagner. “It uses a modified equal-weight approach that I think makes sense in this space. This results in the ETF’s 120 holdings each being assigned roughly the same weight. XBI charges a 0.35% expense ratio.”

Wagner believes this approach makes sense in the biotech space, providing investors with a balanced portfolio within the sector, and his recommendation aligns with the broader consensus among financial experts. Investors looking for exposure to the biotech sector without the pitfalls of individual company risks can consider various biotech ETFs. These ETFs pool investments in a range of companies, providing investors with an opportunity to benefit from the sector’s long-term growth potential.

Click here to read the entire U.S. News & World Report article.