Biotech Boom Sends One ETF Flying to Close the Year

The Alps Medical Breakthroughs ETF, trading under the ticker S BIO, focuses on biotech and pharmaceutical companies with drugs in advanced FDA clinical trials. It includes US-listed small and mid-cap companies with sufficient cash reserves. While the ETF offers potential high rewards, it also carries significant risks if companies fail to deliver. With $200 million in assets and a lower expense ratio than its rival BBC, S BIO has outperformed since its launch in December 2014, yielding a 65% return, surpassing the S&P 500 biotech index. It receives a favorable rating in Bloomberg's traffic light system.

What is the primary focus of the Alps Medical Breakthroughs ETF?

• Biotech and pharmaceutical companies

• Real estate investments

• Renewable energy projects

• Technology startups

What is a requirement for companies included in the S BIO fund?

• Must be headquartered in Europe

• Must have enough cash to last 24 months

• Must have a market cap over $1 billion

• Must be listed on the New York Stock Exchange

Which of the following companies is NOT mentioned as part of the ETF's investment?

• Ligand Pharmaceuticals

• Acadia Pharmaceuticals

• United Therapeutics

• Tesla Inc.

What is a potential downside of investing in the ETF?

• Guaranteed returns

• High risk if companies fail to deliver

• No risk involved

• Fixed interest rates

How has the ETF performed compared to the S&P 500 biotech index since its launch?

• Performed equally

• Underperformed significantly

• Outperformed

• No data available