Why BRIC to invest in Biotech ETFs
Due to hectic lifestyle and unhealthy habits prevailing in this generation there is an ever-growing demand of medical treatment and protective medicines. Considering this fact investing in biotech etf has a promising future.
What is ETF?
ETF or exchange traded fund is an investment fund traded on stock exchanges very similar to the stocks. Investors who are interesting in creating a diversified portfolio can now invest in etfs along with the mutual funds. It provides a low cost and tax-efficient way to invest.
The ETF market is growing tremendously and the structure of its offerings is expanding year by year. It is estimated that about 1000 etfs are now traded in the United States. ETFs are traded in large batches and each etf is managed differently according to the standard it follows.
To maximize your profits while trading etfs look out for a sector whose index has the most relative strength when compared with the broad market. Pharmaceuticals and biotechnology companies are volatile to the market fluctuations. Many investors are skeptical about investing in biotech etfs because of this volatility. However biotech sector will always have a new place because of continuous innovation.
The biotech sector provides growth as well as safety to the investors. The biotech stocks are growing because it is in the business of discovering new technologies. The sector can outperform during critical economic conditions because regardless of economy medicines will always be needed.
Why BRIC?
From the investment perspective in biotechnology sector BRIC etfs seems to be very attractive. BRIC etfs are designed to give holders diversified exposure to Brazil, Russia, India and China. These countries are emerging as a powerful economy with strong growth in GDP after globalization. Owing to the increase in the number of corporate hospitals and healthcare budget there is a huge potential for biotechnology companies in these nation.