IBBQ, GNOM, BIB: Biotech ETFs Offer Exposure to Healthcare Startup Companies

FomoAnxiety · 2026-03-26T19:35:10+00:00

Biotechnology ETFs offer investors exposure to innovative companies in the biotech sector, providing a safer alternative to individual stock picking. With impressive recent returns, these funds, such as Invesco’s IBB and Global X GNOM, cater to different risk appetites.

FomoAnxiety

2026-03-26 19:35:10

Abstract generation in progress

Biotechnology exchange-traded funds (ETFs) provide exposure to cutting-edge startup companies.

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Biotechnology is the use of living systems, organisms, or biological processes to develop medicines and treatments that cure diseases and improve people’s health and lives. This can be a high-risk area of healthcare, but it is often the most rewarding for investors.

Many biotech companies take years to develop cutting-edge treatments for some of the most pressing diseases, from diabetes to cancer. Often, biotechnology companies are acquired by larger, more established pharmaceutical companies as their medications near commercialization.

ETFs offer investors exposure to the biotech sector without the hit-or-miss of picking individual stocks.

Leading Biotech ETFs

Examples of great biotech ETFs include Invesco’s IVZ -1.03% ▼ Nasdaq Biotechnology ETF IBBQ +0.05% ▲ , which is a cost-effective alternative with a low expense ratio of 0.19%. There’s also the Global X Genomics & Biotechnology ETF GNOM -0.78% ▼ that focuses on the niche market of genomics and gene editing.

For investors with a healthy appetite for risk, there is the ProShares Ultra NASDAQ Biotechnology ETF BIB +1.59% ▲ , which is a leveraged option seeking two times the daily returns of other biotech ETFs and intended for short-term trading.

Below is a comparison of these three ETFs. As one can see, each ETF has posted an impressive one-year return ranging from 31% to as high as 55%. This makes biotech ETFs a market outperformer when compared to the 17% return of the benchmark S&P 500 index in 2025.

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