A Closer Look At 2 New Biotech ETFs

LifeSci Partners, LLC launched two new ETFs that concentrate on one of the most popular sectors in the market. The New York-based investment advisor launched the BioShares Biotechnology Clinical Trials Trust ETF BBC and the BioShares Biotechnology Products ETF BBP on Wednesday, December 17.

The new biotech ETFs allow investors to pick between two very unique categories within the sector that offer extremely varying levels of risk.

BBC will provide access to earlier clinical stage companies, with the goal of eventually becoming FDA certified.

BBP, on the other hand, provides investors exposure to companies that have already developed at least one drug that has been approved by the FDA.

Biotechnology investment specialists were behind the development of the two indices that the ETFs track.

Related Link: Gilead Sciences Bucks Trend In Biotech Short Interest

BBC Profile

BBC will be comprised of smaller, younger companies that have a higher risk associated with them than companies that already have an FDA-approved drug in their portfolio. The ETF is made up of 68 companies.

The top individual holdings include:

• Sage Therapeutics Inc
• Retrophin Inc
• Prothena Corporation PLC
• Idera Pharmaceuticals Inc

The ETF opened at $25.92 on its first day of trading, and has an expense ratio of 0.85 percent.

BBP Profile

BBP consists of more established and oftentimes less risky biotech companies due to the already approved drugs. At the end of the second quarter, the index was composed of a total of 43 companies.

The top individual holdings include:

• The Medicines Company
• ImmunoGen, Inc.
• Raptor Pharmaceuticals Corp.
• Seattle Genetics, Inc.

BBP opened at $25.44 on Wednesday and also has an expense ratio of 0.85 percent.

BioShares is providing investors with a unique opportunity through the release of these two ETFs. There are no other ETFs on the market that separates clinical trial biotechnology companies from those who have already obtained FDA approval.

This will allow investors with varying risk tolerance levels to gain exposure to one of the fastest growing sectors in the market in a new unique approach.