Beyond momentum, the sector also looks well-positioned to benefit from the coming Obamacare changes. It managed to avoid the tax issue of the medical device space, while biotech's many new drugs look to be gobbled up by the larger base of insured persons across the U.S.
Mergers and acquisitions have also been a big deal for biotechnology firms, and with a return to M&A activity, this could act as a nice catalyst for the space as well. This is especially true given that the biotech companies generally have decent drug pipelines, and many are small and mid caps that make for ideal takeover targets anyway (see Two ETFs for the Muddle Through Economy).
Zacks Industry Rank
If that wasn't enough, investors should also note that the biotech-genome Zacks Industry Rank is quite favorable as well. At time of writing, this metric came in just outside the top third overall, while the average Zacks Rank for the industry has moved in the right direction over the past week too.
Top Biotech ETFs to Consider
Given this favorable position of the biotech industry, investors may want to consider some of the ETFs tracking this space for exposure. While there a number of quality choices in the space, we have highlighted some of our favorite top performing biotech ETFs below, any of which could make for excellent investments in today's growth-focused market:
Market Vectors Biotech ETF (AMEX:
SOURCE Zacks Investment Research, Inc.
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