5 min readBy Ron Koren ETF Insider
How does the FLTB ETF work?
The FLTB ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The iShares Biotech and Pharma ETF (IBBQ) is managed by Nasdaq, Inc. This ETF seeks to replicate the performance of the Nasdaq Biotechnology and Pharmaceuticals Index, a modified market-capitalization weighted index specifically designed to track the performance of companies listed on the Nasdaq Stock Market in the biotechnology and pharmaceutical sectors. To be eligible for inclusion in the index, securities must belong to either the biotechnology or pharmaceuticals subsectors of the Industry Classification Benchmark (ICB), have a minimum market capitalization of $200 million at the time of the annual rebalancing, and maintain a minimum average daily trading volume of 100,000 shares. The index comprises a mix of large, mid, and small-cap companies, with the largest constituent capped at 8% and the top five constituents allowed to exceed a 4% cap. IBBQ employs a full replication methodology, investing in all the index's constituents proportionally. It's important to note that this ETF is non-diversified, and it may concentrate its investments in biotechnology or pharmaceutical industries, potentially changing its portfolio holdings over time. As of October 31, 2022, the index consisted of 362 constituents with market capitalizations ranging from approximately $9.5 million to $182.2 billion.
While the primary focus of the Innovator IBD® 50 ETF (IBBQ) may lie in tracking the performance of high-potential growth stocks, it also reflects the dividend distribution of the underlying IBD® 50 Index constituents. Dividend distributions in this ETF typically occur on a quarterly basis, mirroring the dividend policies and performances of the individual companies within the index. Investors in IBBQ can potentially benefit from both capital appreciation and a degree of dividend income as they navigate the dynamic landscape of innovative companies in the IBD® 50 Index.
Tracking the Nasdaq Biotechnology Index is the primary objective of the iShares Nasdaq Biotechnology ETF (IBBQ). This ETF seeks to replicate the performance of the Nasdaq Biotechnology Index, which is curated by Nasdaq, Inc. The index is a modified market-capitalization weighted index, focused on biotechnology and pharmaceutical companies listed on the Nasdaq Stock Market. To be included in the index, eligible securities must belong to the biotechnology or pharmaceuticals subsectors of the Industry Classification Benchmark (ICB), have a minimum market capitalization of $200 million during the annual rebalancing, and maintain a minimum average daily trading volume of 100,000 shares. IBBQ aims to provide investors with exposure to the biotech and pharmaceutical industries, reflecting the market performance of these sectors, and it utilizes a full replication methodology to closely mirror the composition and performance of the underlying index. Please note that the concentration policy allows the fund to invest more than 25% of its net assets in biotech or pharmaceutical companies within the underlying index, which may lead to fluctuations in sector exposure over time.
The correlation aspect of the Invesco Nasdaq Biotechnology ETF (IBBQ) is essential for investors seeking exposure to the biotechnology and pharmaceutical sectors. Given that IBBQ tracks an index comprising biotechnology and pharmaceutical companies listed on the Nasdaq Stock Market, its correlation with the performance of these specific industries is expected to be strong. This correlation can provide valuable insights for investors looking to gauge the health and trends of the biotechnology and pharmaceutical sectors in the market. To explore and study the correlations of IBBQ with various assets and sectors, investors can utilize ETF Insider's web app, offering comprehensive data visualization tools for a deeper understanding of this ETF's performance and its overlaps with other market segments.
The Invesco NASDAQ Biotechnology ETF (IBBQ) is primarily focused on the biotechnology and pharmaceutical sectors. This ETF seeks to replicate the performance of the Nasdaq Biotechnology Index, which includes companies listed on the Nasdaq Stock Market specializing in biotechnology or pharmaceuticals. To be eligible for inclusion, companies must fall within the biotechnology or pharmaceutical subsectors of the Industry Classification Benchmark (ICB) and meet specific market capitalization and trading volume criteria. IBBQ is designed to provide investors with exposure to companies at the forefront of innovation in healthcare, making it suitable for those looking to invest in this dynamic and potentially high-growth sector. However, as it concentrates on a specific industry, it may carry a higher level of risk compared to more diversified ETFs.
The exposure characteristic of the Invesco NASDAQ Biotechnology ETF (IBBQ) is centered on the biotechnology and pharmaceutical sectors within the U.S. equity market. IBBQ aims to track the performance of the Nasdaq Biotechnology Index, which comprises companies classified as biotechnology or pharmaceutical firms listed on the Nasdaq Stock Market. This ETF provides investors with targeted access to the dynamic and innovative field of biotechnology and pharmaceuticals, making it a suitable choice for those seeking exposure to this specific industry.
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5 min readThe FLTB ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
4 min readThe IBBQ ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
6 min readThe CHIX ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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