VanEck Biotech ETF (BBH)

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Should You Invest in the VanEck Biotech ETF (BBH)?
ZACKSยท 2025-09-01 11:21
Core Insights - The VanEck Biotech ETF (BBH) is a passively managed fund launched on December 20, 2011, providing long-term investors with a low-cost, transparent, and flexible investment vehicle in the Healthcare - Biotech segment [1][3]. Fund Overview - The fund is sponsored by Van Eck and has assets exceeding $348.17 million, categorizing it as an average-sized ETF in the Healthcare - Biotech sector [3]. - BBH aims to replicate the performance of the MVIS US Listed Biotech 25 Index, which tracks companies involved in drug development and diagnostic equipment [4]. Cost Structure - The ETF has an annual operating expense ratio of 0.35%, positioning it among the least expensive options in the market, with a 12-month trailing dividend yield of 0.76% [5]. Sector Exposure and Holdings - BBH is fully allocated to the Healthcare sector, providing diversified exposure while minimizing single stock risk [6]. - The top holdings include Amgen Inc (15.53%), Gilead Sciences Inc, and Vertex Pharmaceuticals Inc, with the top 10 holdings comprising approximately 71.45% of total assets [7]. Performance Metrics - Year-to-date, the VanEck Biotech ETF has increased by about 5.23%, but it has decreased by approximately 8.47% over the last 12 months as of September 1, 2025 [8]. - The ETF has traded between $140.05 and $181.82 in the past 52 weeks, with a beta of 0.73 and a standard deviation of 19.19% over the trailing three-year period, indicating a higher risk profile [8]. Alternatives - The VanEck Biotech ETF holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Healthcare ETFs market [9]. - Other alternatives include the SPDR S&P Biotech ETF (XBI) and iShares Biotechnology ETF (IBB), with XBI having $5.10 billion in assets and IBB at $5.64 billion, both with competitive expense ratios [10].