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Jun. 02, 2026 01:15PM PST
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We provide an overview of strategies and holdings behind the five biggest biotech ETFs for investors interested in broad exposure to stocks in the biotechnology space.
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The biotech sector has made significant strides in recent years, and the market's volatility can increase the appeal of biotech ETFs.
Even with a good understanding of the system, no one can predict which treatment, device or therapy will give the biggest return, making biotech exchange-traded funds (ETFs) a more secure option than individual biotech stocks.
An ETF is a relatively safe investment route that can minimize losses while offering exposure to multiple companies instead of focusing on the gains and losses of a single biotech stock.
With that in mind, here’s a brief look at the five top biotechnology ETFs by total assets under management (AUM). Data was sourced from ETFdb.com on June 1, 2026, and all data was current as of that time.
1. SPDR S&P Biotech ETF (ARCA:XBI)
Total AUM: US$8.18 billion
Expense ratio: 0.35 percent
Established on February 6, 2006, the SPDR S&P Biotech ETF is a largely balanced fund in terms of weight that focuses mostly on biotech companies with some pharmaceutical companies. As noted by ETF.com, its strategy of equally weighting its portfolio enhances exposure to small- and micro-cap companies and reduces risk associated with an overweighting of one or two companies.
The SPDR S&P Biotech ETF has 145 companies in its portfolio, with the top three being Travere Therapeutics (NASDAQ:TVTX) at a 1.79 percent weight, Revolution Medicines (NASDAQ:RVMD) at 1.78 percent and Alkermes (NASDAQ:ALKS) at 1.71 percent.
2. iShares NASDAQ Biotechnology ETF (NASDAQ:IBB)
Total AUM: US$7.92 billion
Expense ratio: 0.44 percent
The iShares NASDAQ Biotechnology ETF was launched on February 5, 2001, and tracks 244 holdings. This iShares ETF is a diversified fund in that it provides exposure to biotechnology, pharmaceutical and life science tools and services. Its overarching investment goal is to track NASDAQ-listed companies focused on these areas.
Its top three holdings are: Gilead Sciences (NASDAQ:GILD) at a weight of 7.42 percent, Vertex Pharmaceuticals (NASDAQ:VRTX) at 7.4 percent and Amgen (NASDAQ:AMGN) at 7.13 percent.
3. First Trust NYSE Arca Biotechnology Index Fund (ARCA:FBT)
Total AUM: US$2.5 billion
Expense ratio: 0.55 percent
The First Trust NYSE Arca Biotechnology Index Fund entered the market on June 23, 2006, and aims to closely track the NYSE Arca Biotechnology Index. Companies in this fund are either involved in research and development of non-pharmaceutical therapies or companies that produce and deploy tools for biotech practices.
The fund has only 31 holdings, with about half being large-cap stocks and 41 percent being mid-cap stocks. Its holdings are largely equally weighted. The top three holdings of the fund are Corcept Therapeutics (NASDAQ:CORT) at a weight of 4.94 percent, Veracyte (NASDAQ:VCYT) at 4.68 percent and Bruker (NASDAQ:BRKR) at 4.38 percent.
4. ARK Genomic Revolution ETF (ARCA:ARKG)
Total AUM: US$1.21 billion
Expense ratio: 0.75 percent
The ARK Genomic Revolution ETF came into existence on October 31, 2014, and tracks 33 holdings. This ETF follows companies that develop products such as CRISPR technology, bioinformatics, molecular diagnostics and stem cells, or could benefit from advances in such fields.
Mid-cap stocks comprise the largest portion of this top biotechnology ETF's holdings at 42 percent, followed by small-caps at 34 percent. The ETF's three most significant company holdings are Twist Bioscience (NASDAQ:TWST) at a weight of 8.95 percent, CRISPR Therapeutics (NASDAQ:CRSP) at 8.36 percent and Tempus AI (NASDAQ:TEM) at 8.01 percent.
5. Direxion Daily S&P Biotech Bull 3X ETF (ARCA:LABU)
Total AUM: US$552.78 billion
Expense ratio: 0.96 percent
Founded on May 28, 2015, the Direxion Daily S&P Biotech Bull 3X ETF does not mirror an index. Instead, its goal is to obtain daily investment results of at least 300 percent of the S&P Biotechnology Select Industry Index, through active management and daily rebalancing. As such, this ETF is designed for short term trading and should not be held long term.
The Direxion Daily S&P Biotech Bull 3x Shares ETF has 144 holdings. The top stocks in this ETF by weight are Revolution Medicines with a 1.67 percent weight, and Alkermes and Gilead Sciences, both with a weight of 1.55 percent. It also has an 11.82 percent US dollar cash position.
This is an updated version of an article first published by the Investing News Network in 2016.
Don’t forget to follow us @INN_LifeScience for real-time news updates!
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. With over six years as part of the INN team, Lauren is passionate about delivering accurate and informative content to investors.
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Lauren gained her education through Douglas College’s Professional Writing program and SFU’s Editing certificate program. She spent many years at Douglas' student newspaper, including a term as Editor-in-Chief. With over six years as part of the INN team, Lauren is passionate about delivering accurate and informative content to investors.
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