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Biotech ETFs to Buy as Cancer Drug Breakthroughs Accelerate
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Key Takeaways
Oncology-focused biotech funding is rising as companies pursue the commercial potential of cancer therapies.
ETFs provide diversified exposure across companies involved in different areas of oncology innovation.
BBP includes Moderna, Iovance and Halozyme, targeting biotech firms with FDA-approved therapies.
Biotech firms have been increasingly directing capital toward oncology therapeutics in recent years, reflecting a structural shift as companies recognize the significant commercial potential of precision oncology. According to BioPharma Dive data tracking 26 active investors, more than $3.9 billion of the over $9 billion flowing into venture capital-funded biotechs in the first half of 2026 went to companies developing cancer and immunology drugs — together accounting for over 40% of total funds raised.
Looking ahead, the broader market opportunity remains substantial, with the global oncology drugs market projected to grow from $256.5 billion in 2025 to almost $700 billion by 2034, representing an 11.8% CAGR (as predicted by Fortune Business Insights).
For equity market investors, this growth projection represents an opportune moment to add biotech exchange-traded funds (ETFs) to their portfolios.
While the individual players driving the cancer drug revolution offer distinct opportunities, understanding their specific contributions, discussed below, highlights the potential benefits of gaining diversified exposure through ETFs.
Biotech Stocks Powering Oncology’s Next Chapter
A handful of prominent biotech firms have been driving the cancer drug revolution at a rapid pace in recent years. These include:
Moderna (MRNA - Free Report) : Its personalized cancer therapy, intismeran autogene , recently met its primary endpoint of recurrence-free survival in a Phase III melanoma study when combined with Merck’s Keytruda. With nine Phase II and Phase III studies underway across lung, bladder, and renal cancers, Moderna is positioning itself as a platform company with oncology as a central growth pillar.
Amgen (AMGN - Free Report) : This company continues to expand its oncology footprint through both established products and a deep pipeline. Earlier this month, Amgen announced landmark results from a study, depicting its BiTE immunotherapy for small-cell lung cancer offering clinically meaningful improvement in overall survival when combined with AstraZeneca's Imfinzi.
Illumina (ILMN - Free Report) occupies a critical position in the oncology ecosystem as a provider of genomic tools enabling precision medicine. In July 2026, the company expanded its Billion Cell Atlas program by adding three new member companies, including AI-native drug developer Formation Bio.
Introduced in January 2026 with founding participants AstraZeneca, Merck and Eli Lilly, the Illumina Billion Cell Atlas is the world's largest genome-wide genetic perturbation dataset, expected to become the most comprehensive map of human disease biology upon completion. Moreover, in May, ILMN launched a whole-genome sequencing solution for minimal residual disease (MRD) research, crucial for detecting early-stage and low-shedding tumors.
Iovance Biotherapeutics (IOVA - Free Report) has translated tumor-infiltrating lymphocyte (TIL) therapy into commercial reality. Its Amtagvi is the first FDA-approved, one-time T-cell therapy for a solid tumor indication, specifically for advanced melanoma previously treated with other therapies. The company is actively running registrational trials for additional hard-to-treat solid tumors, including advanced sarcomas and metastatic serous endometrial cancer.
Halozyme Therapeutics (HALO - Free Report) provides enabling technology that enhances how oncology drugs are delivered. Its ENHANZE drug delivery platform facilitates subcutaneous administration of injectable therapies, potentially reducing treatment burden for cancer patients. In March 2026, Pfizer nominated a new undisclosed target to be studied with ENHANZE, demonstrating continued industry adoption of the platform.
Why ETFs May Be the Smarter Play
The concentration of venture capital in oncology validates the sector’s potential, but there are inherent risks to individual drug development. Clinical setbacks, competitive pressures and regulatory hurdles can devastate single-stock positions — even for companies with promising platforms.
ETFs mitigate these idiosyncratic risks by providing exposure to dozens of companies across the oncology value chain — from genomic tools providers like Illumina to cell therapy pioneers like Iovance to platform enablers like Halozyme.
This diversification means that a clinical failure at one company does not derail the entire investment thesis. Additionally, ETFs also offer exposure to smaller, innovative companies that individual investors might overlook, offering broader exposure to oncology innovation than a portfolio concentrated in a handful of high-profile names.
Biotech ETFs to Buy
Given the projected growth of the global oncology drugs market and the accelerating pace of therapeutic innovation, the following biotech ETFs, positioned to capture this trend, warrant serious consideration in one’s portfolio:
First Trust NYSE Arca Biotechnology ETF (FBT - Free Report)
This fund, with net assets worth $2.92 billion, offers exposure to 30 leading biotechnology companies. HALO holds the first spot in this fund with 4.57% weightage, while ILMN holds the fourth spot with 3.90% weightage.
FBT has rallied 29.8% year to date and charges 55 basis points (bps) in fees. It carries a Zacks ETF Rank #2 (Buy).
This fund, with net assets worth $493.4 million, offers exposure to 25 companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. AMGN holds the first spot in this fund with 13.74% weightage, while MRNA holds the fifth spot with 6.52% weightage. ILMN holds the tenth position in this fund with 3.80% weightage.
BBH has surged 23.8% year to date and charges 35 bps in fees. It carries a Zacks ETF Rank #2.
This fund, with net assets worth $125.8 million, offers exposure to biotechnology companies with at least one drug therapy approved by the FDA. MRNA holds the first spot in this fund with 4.07% weightage, while IOVA holds the second spot with 3.16% weightage. HALO holds the sixth position in this fund with 2.03% weightage.
BBP has surged 29.9% year to date and charges 34 in fees. It carries a Zacks ETF Rank #2.
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Image: Bigstock
Biotech ETFs to Buy as Cancer Drug Breakthroughs Accelerate
Key Takeaways
Biotech firms have been increasingly directing capital toward oncology therapeutics in recent years, reflecting a structural shift as companies recognize the significant commercial potential of precision oncology. According to BioPharma Dive data tracking 26 active investors, more than $3.9 billion of the over $9 billion flowing into venture capital-funded biotechs in the first half of 2026 went to companies developing cancer and immunology drugs — together accounting for over 40% of total funds raised.
Looking ahead, the broader market opportunity remains substantial, with the global oncology drugs market projected to grow from $256.5 billion in 2025 to almost $700 billion by 2034, representing an 11.8% CAGR (as predicted by Fortune Business Insights).
For equity market investors, this growth projection represents an opportune moment to add biotech exchange-traded funds (ETFs) to their portfolios.
While the individual players driving the cancer drug revolution offer distinct opportunities, understanding their specific contributions, discussed below, highlights the potential benefits of gaining diversified exposure through ETFs.
Biotech Stocks Powering Oncology’s Next Chapter
A handful of prominent biotech firms have been driving the cancer drug revolution at a rapid pace in recent years. These include:
Moderna (MRNA - Free Report) : Its personalized cancer therapy, intismeran autogene , recently met its primary endpoint of recurrence-free survival in a Phase III melanoma study when combined with Merck’s Keytruda. With nine Phase II and Phase III studies underway across lung, bladder, and renal cancers, Moderna is positioning itself as a platform company with oncology as a central growth pillar.
Amgen (AMGN - Free Report) : This company continues to expand its oncology footprint through both established products and a deep pipeline. Earlier this month, Amgen announced landmark results from a study, depicting its BiTE immunotherapy for small-cell lung cancer offering clinically meaningful improvement in overall survival when combined with AstraZeneca's Imfinzi.
Illumina (ILMN - Free Report) occupies a critical position in the oncology ecosystem as a provider of genomic tools enabling precision medicine. In July 2026, the company expanded its Billion Cell Atlas program by adding three new member companies, including AI-native drug developer Formation Bio.
Introduced in January 2026 with founding participants AstraZeneca, Merck and Eli Lilly, the Illumina Billion Cell Atlas is the world's largest genome-wide genetic perturbation dataset, expected to become the most comprehensive map of human disease biology upon completion. Moreover, in May, ILMN launched a whole-genome sequencing solution for minimal residual disease (MRD) research, crucial for detecting early-stage and low-shedding tumors.
Iovance Biotherapeutics (IOVA - Free Report) has translated tumor-infiltrating lymphocyte (TIL) therapy into commercial reality. Its Amtagvi is the first FDA-approved, one-time T-cell therapy for a solid tumor indication, specifically for advanced melanoma previously treated with other therapies. The company is actively running registrational trials for additional hard-to-treat solid tumors, including advanced sarcomas and metastatic serous endometrial cancer.
Halozyme Therapeutics (HALO - Free Report) provides enabling technology that enhances how oncology drugs are delivered. Its ENHANZE drug delivery platform facilitates subcutaneous administration of injectable therapies, potentially reducing treatment burden for cancer patients. In March 2026, Pfizer nominated a new undisclosed target to be studied with ENHANZE, demonstrating continued industry adoption of the platform.
Why ETFs May Be the Smarter Play
The concentration of venture capital in oncology validates the sector’s potential, but there are inherent risks to individual drug development. Clinical setbacks, competitive pressures and regulatory hurdles can devastate single-stock positions — even for companies with promising platforms.
ETFs mitigate these idiosyncratic risks by providing exposure to dozens of companies across the oncology value chain — from genomic tools providers like Illumina to cell therapy pioneers like Iovance to platform enablers like Halozyme.
This diversification means that a clinical failure at one company does not derail the entire investment thesis. Additionally, ETFs also offer exposure to smaller, innovative companies that individual investors might overlook, offering broader exposure to oncology innovation than a portfolio concentrated in a handful of high-profile names.
Biotech ETFs to Buy
Given the projected growth of the global oncology drugs market and the accelerating pace of therapeutic innovation, the following biotech ETFs, positioned to capture this trend, warrant serious consideration in one’s portfolio:
First Trust NYSE Arca Biotechnology ETF (FBT - Free Report)
This fund, with net assets worth $2.92 billion, offers exposure to 30 leading biotechnology companies. HALO holds the first spot in this fund with 4.57% weightage, while ILMN holds the fourth spot with 3.90% weightage.
FBT has rallied 29.8% year to date and charges 55 basis points (bps) in fees. It carries a Zacks ETF Rank #2 (Buy).
VanEck Biotech ETF (BBH - Free Report)
This fund, with net assets worth $493.4 million, offers exposure to 25 companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. AMGN holds the first spot in this fund with 13.74% weightage, while MRNA holds the fifth spot with 6.52% weightage. ILMN holds the tenth position in this fund with 3.80% weightage.
BBH has surged 23.8% year to date and charges 35 bps in fees. It carries a Zacks ETF Rank #2.
Virtus Biotech ETF (BBP - Free Report)
This fund, with net assets worth $125.8 million, offers exposure to biotechnology companies with at least one drug therapy approved by the FDA. MRNA holds the first spot in this fund with 4.07% weightage, while IOVA holds the second spot with 3.16% weightage. HALO holds the sixth position in this fund with 2.03% weightage.
BBP has surged 29.9% year to date and charges 34 in fees. It carries a Zacks ETF Rank #2.