Gilead Sciences, Alexion Pharmaceuticals, BioMarin, Amgen and Biogen make up the top five holdings in the PowerShares Dynamic Biotechnology & Genome Portfolio.
Investors looking for a small cap biotechnology ETF might be out of luck, as no ETF in the biotech sector is specifically designed to target only small cap companies. However, one ETF that has been benefitting from from it’s exposure to small-cap growth stocks is the PowerShares Dynamic Biotechnology & Genome Portfolio (NYSEARCA:PBE).
PBE is based on the Dynamic Biotech & Genome Intellidex Index (INDEXNYSEGIS:DZO), with 90 percent of its holdings invested in stocks that make up the index. The index, for investors who are unaware, is made up of 30 US biotechnology and genome companies, which are actively engaged in research, development, manufacture, and marketing of biotechnology products, services and processes as well as companies that benefit significantly from scientific and technological advances in both the biotechnology and genetic engineering and research. The index closely follows the NASDAQ Biotechnology Index (INDEXNASDAQ:NBI).
For the most part, PBE’s allocations are consist of 41.55 percent small-cap growth companies. From there, the fund has 25.09 percent of its assets in the mid-cap growth company and 23.28 percent focused on large-cap growth – with the remainder divided between large, mid and small-cap value.
PBE came into existence in 2005, and is made up of a total of 31 holdings. Like other ETFs, the fund trades close to its net asset value – $42.14– and has a market value of $285.5 million. Both the PBE and DZO are rebalanced and reconstituted quarterly in February, May, August and November.
To give investors some insight on the nature of this fund, and its holdings, Investing News Network took a closer look at the fund’s top 5 holdings, which included:
- Gilead Sciences (NASDAQ:GILD)
- Alexion Pharmaceuticals (NASDAQ:ALXN)
- BioMarin Pharmaceutical (NYSE:BMRN)
- Amgen inc (NASDAQ:AMGN)
- Biogen (NASDAQ:BIIB)
Here’s a brief look at what these companies have been up to.
Biopharmaceutical company Gilead Sciences has a product pipeline of investigational drugs that include treatments for HIV/AIDS, liver disease, cancer, inflammatory and respiratory diseases and cardiovascular conditions. The company was recently granted marketing authorization for its fixed-dose combination Descovy® for treatment of HIV by the European Commission. Descovy is the first new HIV treatment backbone approved in Europe in over a decade.
As the top holding in PBE, Gilead accounts for 5.09 percent of the total fund’s holdings. The company has a market cap of $137.75 billion making it one of the larger holdings in the fund.
Dubbed one of the world leading companies delivering therapies for patients with devastating and rare diseases, Alexion developed the world’s first approved terminal complement inhibitor, Soliris, which has been approved in more than 50 countries to treat patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome.
Alexion represents a 4.94 percent share of the total PBE holdings. The company has a $34 billion market cap.
With a slightly smaller market cap – $13 billion – than the first two holdings in the PBE fund, BioMarin is the third top holding in the fund with a 4.93 percent share.
The company is engaged in commercializing innovative biopharmaceuticals for rare diseases driven by genetic causes. The company has five products on the market, including Vimzim, for Morquio A Syndrome; Kuvan for Phenylketonuria (PKU), Naglazyme for MPS VI; Aldurazyme for MPS I and Firdapse for LEMS. The company recently enrolled its first patient in Phase 1/2 trial of NAGLU fusion protein BMN 250 for treatment of MPS IIIB.
Working developing human therapeutics, Amgen is focused on meeting unmet medical needs and leveraging its biologics manufacturing expertise to strive for solutions that improve health outcomes as well as patient’s lives.
Amgen represents a 4.85 percent share of PBE’s total holdings. The company has a market cap of $122 billion.
As one of the oldest independent biotechnology companies in the world, Biogen is focused on therapies for people living with serious neurological, autoimmune and rare diseases. The company recently presented data on the impact of Zinbryta on cognitive outcomes and reversibility of its target mechanism of action for people living with relapsing forms of multiple sclerosis.
Rounding off the top five holdings, Biogen represents 4.72 percent of PBE. The company has a market cap of $62 billion.
Want to learn more about biotechnology etfs?
Have a look at our recent overview of the top five holdings in the iShares NASDAQ Biotechnology ETF.
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Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.