Buying This Beaten-Down ETF Could Double Your Money Over the Next 5 Years
There's a big gap between the year-to-date performances of the top two exchange-traded funds (ETFs) focusing on biotechs. The iShares Biotechnology ETF (NASDAQ: IBB) has delivered a solid double-digit percentage gain. Meanwhile, the SPDR S&P Biotech ETF (NYSEMKT: XBI) is in negative territory year to date and is close to 25% below its February highs.
The key to success for the iShares Biotechnology ETF (IBB) has been Moderna (NASDAQ: MRNA). The vaccine stock is the biggest holding for the ETF and has more than quadrupled so far this year.
The SPDR S&P Biotech ETF (XBI) also includes Moderna in its holdings. However, it uses a modified equal weighting, so one stock doesn't drive gains nearly as much as it would for IBB. But don't expect XBI to remain a laggard. Here's why buying this beaten-down ETF could double your money over the next five years.
Source Fool.com
