{"id":1113,"date":"2025-12-10T10:16:52","date_gmt":"2025-12-10T10:16:52","guid":{"rendered":"https:\/\/topinvestorinsight.com\/index.php\/2025\/12\/10\/5-small-cap-biotech-etfs-to-watch\/"},"modified":"2025-12-10T10:16:52","modified_gmt":"2025-12-10T10:16:52","slug":"5-small-cap-biotech-etfs-to-watch","status":"publish","type":"post","link":"https:\/\/topinvestorinsight.com\/index.php\/2025\/12\/10\/5-small-cap-biotech-etfs-to-watch\/","title":{"rendered":"5 Small-cap Biotech ETFs to Watch"},"content":{"rendered":"<\/p>\n

Thanks to exchange-traded funds (ETFs), investors don\u2019t have to be tied to one specific stock. When it comes to b<\/strong>iotech ETFs, they give sector participants exposure to many biotech companies via one vehicle.<\/strong><\/p>\n

ETFs are a popular choice as they allow investors to enter the market more safely compared to investing in standalone stocks. A key advantage is that even if one company in the ETF takes a hit, the impact will be less direct.<\/p>\n<\/p>\n

All other figures were also current as of that date. Read on to learn more about these investment vehicles.<\/p>\n

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1. ProShares Ultra NASDAQ Biotechnology ETF (NASDAQ:BIB)<\/h3>\n

AUM:<\/strong> US$86.84 million<\/p>\n

The ProShares Ultra NASDAQ Biotechnology ETF, launched in April 2010, is leveraged to offer twice daily long exposure to the broad-based NASDAQ Biotechnology Index, making it an ideal choice \u201cfor investors with a bullish short-term outlook for biotechnology or pharmaceutical companies.\u201d However, analysts also advise investors with a low risk tolerance or a buy-and-hold strategy against investing in this fund due to its unique nature.<\/p>\n

Of the about 250 holdings in this ETF, the top biotech stocks are Amgen (NASDAQ:AMGN) at 5.33 percent weight, Vertex Pharmaceuticals (NASDAQ:VRTX) at 5.27 percent and Gilead Sciences (NASDAQ:GILD) at 4.89 percent.<\/p>\n<\/div>\n

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2. Direxion Daily S&P Biotech Bear 3x Shares (ARCA:LABD)<\/h3>\n

AUM:<\/strong> US$80.92 million<\/p>\n

The Direxion Daily S&P Biotech Bear 3X Shares is designed to provide three times the daily return of the inverse of the S&P Biotechnology Select Industry Index, meaning that the ETF rises in value when the index falls and falls in value when the index rises. <\/p>\n

Leveraged inverse ETFs are designed for short-term trading and are not suitable for holding long-term. They also carry a high degree of risk as they can be significantly affected by market volatility. <\/p>\n

Unlike the other ETFs on this list, LABD achieves its investment objective through holding financial contracts such as futures rather than holding individual stocks. <\/p>\n<\/div>\n

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3. Global X Genomics & Biotechnology ETF (NASDAQ:GNOM)<\/h3>\n

AUM:<\/strong> US$52.9 million<\/p>\n

The Global X Genomics & Biotechnology ETF tracks the Solactive Genomics Index, focusing on companies involved in gene editing, genomic sequencing, genetic medicine, computational genomics and biotech. <\/p>\n

The ETF holds 48 stocks, with about 90 percent in the pharmaceuticals, biotechnology and life sciences sector. Its top three holdings are Arrowhead Pharmaceuticals (NASDAQ:ARWR) at 6.06 percent, Guardant Health (NASDAQ:GH) at 5.5 percent and Illumina (NASDAQ:ILMN) at 5.05 percent.<\/p>\n<\/div>\n

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4. Tema Heart and Health ETF (NASDAQ:HRTS)<\/h3>\n

AUM:<\/strong> US$52.53 million<\/p>\n

Launched in November 2023, the Tema Heart and Health ETF tracks biotech stocks with a focus on diabetes, obesity and cardiovascular diseases. The fund was renamed on March 25 from Tema Cardiovascular and Metabolic ETF, and again on June 27 from the GLP-1 Obesity and Cardiometabolic ETF.<\/p>\n

There are 47 holdings in this biotechnology fund, with about 75 percent being large-cap stocks and 22 percent mid-cap. About three-quarters of its holdings are based in the US. Its top biotech holdings are Eli Lilly and Company (NYSE:LLY) at a 10.25 percent weight, Roche Holding (OTCQX:RHHBY,SWX:ROG) at a 4.54 percent weight and UnitedHealth Group (NYSE:UNH) at a 4.25 percent weight. <\/p>\n<\/div>\n

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5. Virtus LifeSci Biotech Products ETF (ARCA:BBP)<\/h3>\n

AUM: <\/strong>US$31.42 million<\/p>\n

The Virtus LifeSci Biotech Products ETF tracks the LifeSci Biotechnology Products Index, focusing on US-listed biotech companies with at least one FDA-approved drug therapy. <\/p>\n

Launched in December 2014 by Virtus Investment Partners, it provides targeted exposure to firms in the product stage, from startups to large players, through passive, equal-weighted holdings rebalanced semi-annually.<\/a><\/span><\/span><\/p>\n

<\/span>Its top holdings include Travere Therapeutics (NASDAQ:TVTX) at a weight of 3.32 percent, Ionis Pharmaceuticals (NASDAQ:IONS) at 3.22 percent and Insmed (NASDAQ:INSM) at 2.97 percent. <\/p>\n<\/div>\n

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n

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