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 are the risks associated with investing in biotech companies as mentioned in the text?

How has the performance of the ETF compared to the S&P 500 biotech index?