Biotech ETFs (exchange-traded funds) provide a basket of securities focused on the biotechnology sector. If you’re interested in investing in this industry, these options provide a well-balanced entry into the area. The following ETF biotech options give you ample choices.
ETFs have become extremely popular among investors. In response, the market has filled with options. There are approximately 2,000 ETFs on U.S. exchanges alone. One of the most difficult parts of working with ETFs is simply choosing the right ones.
GNOM offers results corresponding to the Solactive Genomics Index, investing 80% or more of its funds in securities on this index. This ETF focuses on companies that will benefit from advancements in genomic science. This is a nondiversified investment.
LABD is one of the best biotech ETFs based on performance. It provides a daily leveraged inverse (-3x) bet that’s rebalanced at the end of the day. LABD provides exposure on the S&P Biotechnology Select Industry Index. This choice is ideal for short-term traders seeking modest spreads.
This ETF seeks to provide daily results that are three times the inverse of the daily performance as based on the NASDAQ Biotechnology Index. This ETF is meant for short-term trading and is not an effective choice if you’re interested in holding on to an ETF for long-term results.
BIS is an ETF for short-term investors, as it focuses on providing daily investment results that are two times the inverse of the NASDAQ Biotechnology Index’s daily performance. It offers a high expense ratio that’s unlikely to provide returns over more than a single day.
CHNA provides biotech exposure via a basket of companies in the biopharmaceutical industry. The goal of this fund is to ultimately support China as a global leader in health care. Through this ETF you can invest in drug manufacturers, wholesalers, distributors, and service providers as well as diagnostics companies. This is a prime choice for investors who want exposure to foreign securities.
PBE follows the Dynamic Biotech & Genome Intellidex Index, which evaluates companies based on criteria such as price and earnings momentum, management action, value, and quality. More than 70% of the 29 holdings in PBE are mid- or small-cap stocks. This ETF sits within the top five performers for the biotech sector.
The market value of SBIO member firms ranges from $200 million to $5 billion. This fund is exclusive to companies that have drugs and treatments in Phase II or Phase III clinical trials. SBIO seeks results that correspond to the performance of the Poliwogg Medical Breakthroughs index.
If you’re interested in diversifying your investment, PSCH is a smart choice. This ETF tracks the results of the S&P SmallCap 600 Capped Health Care Index. It offers a combination of small-cap and health care stocks to offer biotechnology exposure. About 72% of the 69 holdings classify as small-cap growth stocks, and more than 19% are biotechnology stocks.
Biotechnology stocks account for about a third of the LNGR fund. This is a thematic ETF that focuses on large rapidly aging populations. It strives to offer investment results corresponding to the Indxx Global Longevity Thematic Index by offering investment opportunities in companies that provide pharmaceuticals, health care, and living facilities for the senior population.
IBB offers a distinct type of coverage by tracking a market-cap-weighted index of pharmaceutical and biotechnology companies on NASDAQ. This approach favors large caps, providing solid exposure to the top companies in these industries. IBB favors pharmaceuticals slightly more than biotech businesses.
If you’re interested in an ETF that’s purely invested in biotechnology funds, XBI should top your list of choices. This ETF offers exposure to a broad portfolio of U.S. biotech companies with an emphasis on small-caps and micro-caps. This is a very efficient fund with a strong history of beating its index.
FBT offers an equally weighted basket that’s comprised primarily of small and mid-caps. Results typically correspond to the NYSE Arca Biotechnology Index. FBT’s concentrated index is comprised of 30 names in biotechnology, pharmaceuticals, and medical technology. This makes the fund more concentrated than most.
ARKG is a managed ETF focused on companies that work with genomics. This includes businesses that develop or produce bioinformatics, stem cells, molecular diagnostics, and targeted therapies. Though this ETF takes a unique approach to its investments, the spread is typically wide with thin liquidity, which may be a concern for some investors.
LABU strives to provide 300% of the daily performance of the S&P Biotechnology Select Industry Index. This index features almost 90 securities across the biotechnology and health care sectors. The ETF offers exposure to options and derivatives contracts that are rebalanced at the end of each trading session.
BBH’s portfolio contains 25 U.S.-listed companies in biotechnology, pharmaceuticals, and medical equipment. It seeks to replicate the performance of the MVIS U.S. Listed Biotech 25 Index. Though all the companies are listed in the U.S., some may be foreign businesses. These companies are weighted by capitalization. BBH offers highly liquid assets though it’s a very concentrated fund.
BIB is a leveraged ETF based on the NASDAQ Biotechnology Index. It maintains a large-cap bias with a focus on pharmaceutical and biotechnology firms. This ETF is intended for short-term trading. It’s rebalanced daily, and investors are generally advised to hold the funds for no more than a day for the best returns.
BTEC aims to provide results corresponding to the performance of the NASDAQ Healthcare Innovators Index, which features U.S. health care companies with small and medium capitalization. These are primarily businesses that are waiting on regulatory approval and not those with existing products on the market. BTEC also targets companies with negative earnings over the prior year.
BBC attempts to provide results corresponding to the performance of the LifeSci Biotechnology Clinical Trials Index. This index follows the performance of biotechnology companies in the clinical trials stage. This creates a small basket of small-cap and micro-cap stocks. BBC is a volatile and high-risk choice, but it also offers the potential for big rewards.
CNCR provides exposure to a basket of about 30 companies focused on immunotherapy treatments for cancer. This is a focused subset of the biotechnology market. These companies have drugs that are either on the U.S. or European markets or are in human clinical trials. CNCR includes companies with a variety of drug mechanisms and provides equal weighting.
IDNA offers exposure to the top 50 scoring equities in health care equipment, health services, and biopharmaceuticals with a focus on those that can benefit from immunology, genomics, and bioengineering innovations. Companies are scored based on the revenue generated in their respective industries.
This fund strives to provide results corresponding to the performance of the LifeSci Biotechnology Products Index. This follows biotechnology companies that have at least one FDA-approved drug therapy. BBP equally weights its holdings and has large spreads with thin volume, making it a tricky option.
Investors in UBIO enjoy 3x daily gains and losses of its market-cap-weighted index of pharmaceutical and biotechnology companies listed on the NASDAQ. This is a levered form of IBB offering 3x exposure rather than the 2x exposure of its sibling, BIB. UBIO resets its mixed exposure to swap and equity agreements daily.
GNOM tracks a weighted, market-cap selected index of biotech equities. This ETF focuses on companies involved in genomics, seeking businesses that derive more than half of their income from gene editing, genomic sequencing, biotechnology, computational genomics and genetic diagnostics, and genetic medicines and therapies.
Invest in the biotechnology sector efficiently with a careful selection from these ETFs. To learn more about trading, attend a webinar hosted by an investment expert.
My goal is to expose the dirtiest players on Wall Street and show you how you can directly profit off the backs of these whales. Today, I’ve got a story about a publicly-traded pharmaceutical company (Clovis Oncology) and how it raised $298M by lying to everyday investors and traders.
We all know how Wall Street insiders profit off inside information and use shady tactics to line their pockets — it’s all part of the game. When a publicly-traded company lies about a lung cancer drug, I can’t stand for that… and I try my best to expose the scum. I’m not doing this and shouting, “The game is rigged!”
Instead, I learn from these insider trading cases so I could not only avoid the scams, but also legally profit from Wall Street insiders.
So let’s see how CLVS lied to investors and how the Chief Financial Officer (CFO) benefited from these lies.
The CEO of Clovis Oncology (CLVS) straight-up lied about the company’s lung cancer drug with the help of the CFO, and they raised $298M doing it. We all know the financial watchdog — the U.S. Securities and Exchange Commission (SEC) always finds these dirty players… but that’s after the fact and the damage has been done.
Sometimes, there are clues behind shady activity in the market, and you can legally profit off Wall Street’s insiders and their best ideas (more on that later).
The SEC isn’t playing around with this Colorado-based pharma company. It’s slapping CLVS with $20M in penalties to settle the charges. Not only that, but the CEO and CFO will have fines out of their own pockets as well.
Clovis is a publicly-traded company with tough competition. Clovis was developing a lung cancer drug being that was similar to and simultaneously being developed by a competitor.
The scandal kicked off in May 2015 during an American Society of Clinical Oncology conference, Clovis told investors that their drug rociletinib’s objective response rate in the ongoing clinical trials was 60%. In other words, 60% of patients that received a 500mg dose targeted tumors shrank.
These are odds many would take.
And who bought this news to the masses? None other than CEO Patrick Mahaffy.
60% was an important number because their competitor’s success rate was 63% at that time.
Investors flocked to Clovis believing its lung cancer would be a miracle drug. Clovis made $298 million in a public stock offering in July 2015 thanks to these results.
Soon after, Clovis executives including Mahaffy and Mast were provided with the lung cancer drug’s true success rate.
The rate was actually lower, much lower than 60%. The objective response rate of the treatment was actually mid-40s.
Less than a month later the U.S Food and Drug Administration showed the objective response rate was actually more like 42%. ─── 18% less than what was told to investors. Both Mahaffy and Mast were informed about these new numbers.
However, Clovis continued to use the ORR number of 60% from the initial May 2015 conference. Investors poured money into a company believing its wonder drug would save lives and boost earnings… but the uninformed investors actually blindly threw their money to the tune of $298 million into Clovis’ securities offering.
Even after the secondary offering, Clovis continued and continued to use the beefed ORR of 60% in public disclosures. CFO Erle Mast aided and abetted in these bogus statements and omissions that Mahaffy touted.
The summer success was over. In November things began to fall apart.
On November 9th, the FDA let Clovis know that it didn’t agree with its calculation of success for the treatment. The FDA calculated the ORR to be in the 20s, 40% lower than what Clovis claimed. The FDA demanded Clovis provide it with new ORR numbers by November 16, 2015.
Clovis finally owned up to its lie… and on the deadline, it was announced the ORR was 28%, 32% lower than what investors were told.
The stock collapsed at this news, falling about 70%. Taking share prices from $99.43 to $30.24 in 72 hours.
Once the news was out… Clovis decided to stop its research and development on the drug.
But that’s not all folks!
Take what you just learned and add this fact── Clovis also issued stock to its very own employees as part of its stock incentive plan.
So not only did Clovis screw over investors, but they also treated their very own employees no better. Leaving them to hold worthless stock and a reputation of working for a company that specialized in lies. CFO Mast was the only employee not screwed over by the stock collapse. Mast took his inside knowledge and sold his Clovis securities prior to the November 16th stock plummet.
What happened to the company and the CEO and CFO?
Well CLVS is still a publicly-traded company, but it will pay a $20 million dollar penalty for its actions. Mahaffy will be paying a quarter-million-dollar penalty. Mast will pay a $100K penalty and then will be paying disgorgement of $454,145 disgorgement plus interest for selling Clovis stock when it was at its most inflated price.
The SEC also is planning to create a Fair Fund to house the penalties to be distributed to investors harmed by Clovis’ lies.
Does anyone else feel dirty reading about how low the CEO and CFO of Clovis stooped?
The thing is… I see some shady activity in the options market all the time! However, we can legally and ethically profit off the backs of these Wall Street behemoths.
Don’t believe me?
Let me show you how it all works.
The options market is filled with clues as to what Wall Street insiders are doing. You see, they try to use options to cover their tracks… but what they don’t know is the fact there are scanners out there that detect their every move.
Let me show you how it all works with a case study.
I spotted unusual options activity in Zynga (ZNGA). A trader came in and bought 7,509 ZNGA June 19 $6 calls for $0.66.
That’s a whopping $495,594 bet that ZNGA would trade above $6.66 before the June expiration date. When I see a massive trade like that… I put it on my watchlist and send it out to my clients.
Just a few days later… it was time for me to strike, as I saw the perfect entry. However, I didn’t follow those “insiders” to a T. Instead, I made the trade idea my own and looked for closer-dated call options. Here’s what I sent out to clients in real-time.
I bought 300 ZNGA February 14 $6.50 Calls for .15.
There have been unusual sweepers on this one for months and I’m hearing on my newswires that they just cancelled out of a conference (possible M&A coming?).
A rumor there but I think it can run today on that with the possibility of hitting a homerun.
The most interesting part about this trade was the fact ZNGA was set to report earnings… and it had just suffered a large drop but found a key support level just under $6.
So I took a stab at it…
And what do you know?
ZNGA beat the street’s expectations and started soaring, as you can see in the chart above!
Of course, once the news was out, I took my profits off the table and was able to double my money overnight.
If you want to learn how I locked in a 100% on this winner, you’ll want to check out my brand new eBook. The tactics that I outline in Dollar Option Trader, are already helping traders post returns of 263%, 448%, and 545%.
Stop missing out on these massive winners and claim Dollar Option Trader at absolutely no cost.
You should know the name of the game by now, exposing the Wall Street scum and how they steal from everyday people. Today, I’ve got a cringe-worthy case for you that involved 10 people with multiple companies who raked in a whopping $27M in fraudulent stock sales.
Before I get into the story, I want to clarify why exactly I’m doing this.
I don’t want everyday people like yourself to get caught up in these schemes. Of course, I don’t want people to lie to you and tell you they can manage your money better than you can. Instead, I want to expose these Wall Street fatcats and show you how you can profit off the backs of these “insiders”.
Not only that, I want to teach you how to be skeptical when someone comes at you with an amazing investment opportunity, so you could tell them, “Thanks, but no thanks… I know how to make money in the options market on my own.”
Now that we’ve got that out of the way, let’s take a look at how these 10 dirty players pumped and dumped stocks to line their pockets with millions of dollars.
Get ready for a lot of names…
Barry C. Honig, John Stetson, Michael Brauser, John R. O’Rourke III, Mark Groussman, Phillip Frost, Robert Ladd, Elliot Maza, Brian Keller, and finally John H. Ford were involved in 3 pump and dumps that brought in tens of millions of dollars.
You may not know any of these greedy folks… but there’s one who should stick out right away.
Ever heard of him? If not, the guy is a biotech billionaire and has and does chair on numerous companies and is known for his giving heart. Reportedly he and his wife are the most giving couple in all of Florida. Many donated buildings from universities to museums sport their names.
The now 85-year old may not have known about the scheme… but he did play a role.
The real mastermind was Barry C. Honig. Barry worked the others like chess pieces in a match, and many may have just been pawns in his elaborate scheme. Barry would call them to buy shares or to dump them at his word.
Here’s how he did it…
Barry would have them negotiate transactions, take part in promotions, or organize issuance of shares.
However, every scheme ran the same way. Honig coordinated the 9 players to buy a huge amount of a particular stock at a large discount. And the would do this 1 of 2 ways.
Thereafter, O’Rourke, Groussman, Stetson, Brauser, and Frost would strategically buy, hold, or sell their shares in perfect harmonization with one another. The profits from the sale were always well worth the wait.
How exactly did they profit?
Honig and his buddies would pay for the promotion of a stock. Honig would direct Ford or one of the other 8 to write positive and very misleading articles about the company whose stock they just bought.
The goal: To make readers believe this was a MUST HAVE stock. To quote an article word for word “This is big big big!”
The results from the promos were always a generously inflated stock price.
Honig, Brauser, O’Rourke, Groussman, Melechdavid, and the company ATG burst into action, engaging in pre-release trading purely to manipulate how investors saw the stock. You know, the type of “insider” activity we still see in this market to this day.
I know, I know… let’s cut to the chase.
Together the 10 pulled off 3 schemes before getting caught and here’s what they raked in:
Every time real people like you and me were left holding crap stock that was basically worthless.
But what if it didn’t have to be that way?
What if you could spot these moves ahead of time and figure out that someone knows something and get in on the same side?
Well, you can.
In order to figure out where the smart money is throwing down their massive bets, I use a proprietary scanner that detects unusual options activity (UOA).
When you hear UOA, you may get taken back for a second… but don’t let that scare you. It’s actually really simple. All I really do is wait for the scanner to detect a large options order, and thereafter, I dissect the information and put it on a watchlist that I send out to my clients.
Let me show you how it all works, and how I spotted a +153% winner.
I noticed call buyers sweeping up options in Intel Corp. (INTC), so I threw it on my watchlist.
Why did it stick out to me?
Well, someone bought $42,200 worth of January 31 $67.50 calls — a long-shot bet, as the options were set to expire in a matter of days.
Now, the markets experienced a lot of volatility during this time, so I decided to be patient. The day after I sent out my watchlist, stocks calmed down… so I decided to take a stab and follow this player(s).
Guess what happened in just a few hours?
INTC caught a bid… and I doubled my money! As always, when I double up, I like to take some profits off the table and let the rest ride. After all, I was playing with the house’s money at this point. I really couldn’t lose any money at this point.
The very next day, the options ran up AGAIN! I juiced another 53% out of the trade… and at that point, I decided to take cash in.
If you want to learn how I locked in a 153% on this winner, you’ll want to check out my brand new eBook. The tactics that I outline in Dollar Option Trader, are already helping traders post returns of 263%, 448%, and 545%.
Stop missing out on these massive winners and claim Dollar Option Trader at absolutely no cost.