Biotechnology stocks are on track to beat the stock market for a remarkable fifth year straight. ?The largest biotech exchange-traded fund, iShares Nasdaq Biotechnology ETF (IBB), with more than $9 billion in assets, rallied an average of 36% the past five years vs. 10.4% for the SPDR S&P 500 ETF (SPY). On a 10-year basis, IBB earned investors a 17% return annually vs. 6% for SPY, according to Morningstar.
Paul Yook ? the co-founder LifeSci Index Partners of New York City ? believes he?s unveiled a healthier way to slice and dice the biotechnology industry. He has separated them by those undergoing research and those with products out on the market. His BioShares Biotechnology Clinical Trials ETF (BBC) and BioShares Biotechnology Products Fund (BBP) have attracted $27 million and $33 million in inflows, respectively, since they launched in December 2014, according to ETF.com. Both charge a 0.85% annual management fee ? nearly double the ETF industry average of 0.44%.
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