Should You Invest in the Invesco Biotechnology & Genome ETF (PBE)?

If you're interested in broad exposure to the Healthcare - Biotech segment of the equity market, look no further than the Invesco Biotechnology & Genome ETF (PBE), a passively managed exchange traded fund launched on 06/23/2005.Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Biotech is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $254.91 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Biotech segment of the equity market. PBE seeks to match the performance of the Dynamic Biotechnology & Genome Intellidex Index before fees and expenses.The Dynamic Biotech & Genome Intellidex Index seeks to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.05%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Healthcare sector--about 99.80% of the portfolio.Looking at individual holdings, Natera Inc (NTRA) accounts for about 5.40% of total assets, followed by Incyte Corp (INCY) and United Therapeutics Corp (UTHR).The top 10 holdings account for about 45.60% of total assets under management.Performance and RiskThe ETF has added roughly 3.83% so far this year and it's up approximately 7.16% in the last one year (as of 01/22/2025). In that past 52-week period, it has traded between $59.62 and $72.24.The ETF has a beta of 0.79 and standard deviation of 22.84% for the trailing three-year period, making it a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers.AlternativesInvesco Biotechnology & Genome ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PBE is an excellent option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.SPDR S&P Biotech ETF (XBI) tracks S&P Biotechnology Select Industry Index and the iShares Biotechnology ETF (IBB) tracks Nasdaq Biotechnology Index. SPDR S&P Biotech ETF has $6.26 billion in assets, iShares Biotechnology ETF has $6.40 billion. XBI has an expense ratio of 0.35% and IBB charges 0.45%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Biotechnology & Genome ETF (PBE): ETF Research Reports United Therapeutics Corporation (UTHR): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports SPDR S&P Biotech ETF (XBI): ETF Research Reports Natera, Inc. (NTRA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks