{"id":599,"date":"2025-05-21T15:21:18","date_gmt":"2025-05-21T15:21:18","guid":{"rendered":"https:\/\/marketspaceinsights.com\/index.php\/2025\/05\/21\/5-small-cap-biotech-etfs-to-watch\/"},"modified":"2025-05-21T15:21:18","modified_gmt":"2025-05-21T15:21:18","slug":"5-small-cap-biotech-etfs-to-watch","status":"publish","type":"post","link":"https:\/\/marketspaceinsights.com\/index.php\/2025\/05\/21\/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<\/p>\n

\n
<\/div>\n<\/div>\n
\n

1. ALPS Medical Breakthroughs ETF (ARCA:SBIO)<\/a><\/h3>\n

AUM:<\/strong> US$80.23 million<\/p>\n

Launched in December 2014, the ALPS Medical Breakthroughs ETF tracks small- and mid-cap biotech stocks that have one or more drugs in either Phase II or Phase III US FDA clinical trials. Its holdings must have a market cap between US$200 million and US$5 billion.<\/p>\n

There are 100 holdings in this biotechnology fund, with about 60 percent being small- and micro-cap stocks. Its top holdings include Verona Pharma (NASDAQ:VRNA) at a weight of 5.31 percent, Alkermes (NASDAQ:ALKS) at 4.41 percent and Axsome Therapeutics (NASDAQ:AXSM) at 4.24 percent.<\/p>\n<\/div>\n

\n

2. Tema Oncology ETF (NASDAQ:CANC)<\/h3>\n

AUM:<\/strong> US$63.67 million<\/p>\n

The Tema Oncology ETF provides exposure to biotech companies operating in the oncology industry. It includes companies developing a range of cancer treatments, including CAR-T cell therapies and bispecific antibodies.<\/p>\n

Launched in August 2023, there are 52 holdings in this biotechnology fund, of which about half are small- to mid-cap stocks and 4 percent are micro-cap stocks. Among its top holdings are Revolution Medicines (NASDAQ:RVMD) at a 6.05 percent weight, Roche Holding (OTCQX:RHHBF,SWX:RO) at a weight of 5.08 percent and Eli Lilly and Company (NYSE:LLY) at 4.87 percent.<\/p>\n<\/div>\n

\n

3. Tema GLP-1 Obesity and Cardiometabolic ETF (NASDAQ:HRTS)<\/h3>\n

AUM:<\/strong> US$51.5 million<\/p>\n

Launched in November 2023, the Tema GLP-1 Obesity and Cardiometabolic 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. More than three-quarters of its holdings are based in the US.<\/p>\n

There are 47 holdings in this biotechnology fund, with about 75 percent being large-cap stocks and 18 percent mid-cap. Its top holdings are Eli Lilly and Company at a 9.92 percent weight, Abbott Laboratories (NYSE:ABT) at 4.77 percent and AstraZeneca (NASDAQ:AZN) at 4.14 percent.<\/p>\n<\/div>\n

\n

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

AUM:<\/strong> US$44.19 million<\/p>\n

The ProShares Ultra NASDAQ Biotechnology ETF was launched in April 2010 and 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 268 holdings in this ETF, the top biotech stocks in the ETF are Gilead Sciences (NASDAQ:GILD) at a 6.06 percent weight, Vertex Pharmaceuticals (NASDAQ:VRTX) at 5.99 percent and Amgen (NASDAQ:AMGN) at 5.84 percent. Additionally, over a third of its holdings are in United States Treasury Bills.<\/p>\n<\/div>\n

\n

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

AUM:<\/strong> US$43.42 million<\/p>\n

The Direxion Daily S&P Biotech Bear 3x Shares ETF is designed to provide three times the daily return of the inverse of the S&P Biotechnology Select Industry Index, meaning that it rises in value when the index falls and falls in value when it rises. Leveraged inverse ETFs are designed for short-term trading and are not suitable to hold long-term. They also carry a high degree of risk as they can be significantly affected by market volatility.<\/p>\n

The top three life science holdings in this ETF are Exact Sciences (NASDAQ:EXAS) at a weight of 2.23 percent, Alnylam Pharmaceuticals (NASDAQ:ALNY) at a weight of 2.15 percent and Neurocrine Biosciences (NASDAQ:NBIX) at 2.03 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

<\/p>\n","protected":false},"excerpt":{"rendered":"

Thanks to exchange-traded funds (ETFs), investors don\u2019t have to be tied to one specific stock.…<\/p>\n","protected":false},"author":1,"featured_media":600,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/posts\/599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/comments?post=599"}],"version-history":[{"count":0,"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/posts\/599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/media\/600"}],"wp:attachment":[{"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/media?parent=599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/categories?post=599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketspaceinsights.com\/index.php\/wp-json\/wp\/v2\/tags?post=599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}