One of the most interesting sectors, both for short-term trading and for medium-term investment, is the Biotechnology sector.
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The Nasdaq Biotechnology index, after resting towards the end of October 2023 at the graphical support located in the 3,650-3,635 point area, has in fact made an important recovery and has moved close to 4,600 points.
The quantitative analysis confirms the presence of a solid positive trend, with the main directional indicators in a long position.
After a brief pause for settlement, a further lengthening is therefore possible: the breakout of 4,600 points will therefore open up further room for growth, with a first target in the 4,660-4,665 area and a second target at 4,700-4,705 points.
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It is difficult for now to hypothesise a bearish trend reversal: from a graphical point of view, in fact, only a descent below 4,280 points could provide a negative signal and trigger a correction of a certain consistency.
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The following ETFs can be used to invest in the Biotechnology sector:
Invesco Nasdaq Biotech, ISIN IE00BQ70R696. This ETF has €613m in assets under management, synthetic replication of the underlying (via a swap) and adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.40% per annum.
iShares Nasdaq Biotechnology, ISIN IE00BYXG2H39. This ETF has €407m in assets under management and provides for sampling replication of the underlying (buying only the most important components of the Nasdaq Biotechnology index). The ETF adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.35% per annum.
Global X Genomics & Biotechnology, ISIN IE00BM8R0N95. This is an ETF with €8m in assets under management, which provides for total physical replication of the underlying (by purchasing all components of the Solactive Genomics index) and which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.50% per annum.
WisdomTree BioRevolution, ISIN IE000O8KMPM1. It is an ETF with €7m in assets under management, which provides for the total physical replication of the underlying (consisting of the WisdomTree BioRevolution ESG Screened index) and which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.45% per annum.
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Reproduction prohibited in any form, even partial
Disclaimer
The contents of these notes and the opinions expressed should in no way be regarded as an invitation to invest. The analyses do not constitute a solicitation to buy or sell any financial instrument.The purpose of these notes is financial analysis and investment research. Where recommendations are made, they are of a general nature, are addressed to an indistinct audience and lack the element of personalisation. Although the result of extensive analysis, the information contained in these notes may contain errors. Under no circumstances can the authors be held liable for any choices made by readers on the basis of such erroneous information.erroneous information. Anyone deciding to carry out any financial transaction on the basis of the information contained in the site does so assuming full responsibility.
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