Which Biotech ETF Is a Better Buy: Concentrated Bet or Broad Basket?
Invesco Nasdaq Biotechnology ETF (IBBQ) emerges as the better choice over VanEck Biotech ETF (BBH) for most investors. IBBQ offers broader diversification with 251 holdings, lower fees (0.19% vs 0.35%), higher dividend yield (0.8% vs 0.4%), and superior 5-year returns ($1,338 vs $1,061 on $1,000 invested). While BBH's concentrated 25-stock portfolio provides focused exposure to biotech leaders, it carries higher single-company risk without compensating benefits.