Biotechnology stocks have been doing very well for the past several weeks.
There are different investment strategies for investing in biotechnology. One may prefer to invest directly in the companies. If that is your preference, you may want to look at Portola Pharma (PTLA), Puma Biotech (PBYI), and Blueprint Medicines (BPMC). These companies all have very interesting research strategies and have received favorable analysists reviews. And they have been performing very well of late.
Another approach is to invest through mutual funds. This approach offers the advantage of diversification. And just like the individual stocks mentioned above, several biotechnology mutual funds have shown impressive returns.
The iShares Biotech ETF (IBB) tracks the Nasdaq Biotech Index. For 2017, through the end of July, this ETF is up almost 19%. That is well ahead of broader market benchmarks.
If diversification offered by mutual funds is important to you, there are several mutual funds that specialize in biotechnology and have shown very respectable results over relatively long periods of time. For example, Fidelity Select Biotech (FBIOX), Franklin Biotechnology (FBDIX), and T. Rowe Price Health Sciences (PRHSX) are all very reputable mutual funds that have impressive track records.