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Biotech ETF (BBC) Hits a New 52-Week High

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For investors seeking momentum, Virtus LifeSci Biotech Clinical Trials ETF (BBC - Free Report) is probably on the radar now. The fund just hit a 52-week high, and is up about 61% from its 52-week low price of $20.22/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

BBC in Focus

BBC focuses on the biotechnology segment of the U.S. market with equal-weight exposure across stocks. It invests solely in firms with promising drugs in clinical human trials that have not yet been approved by the FDA or gone into production. The fund charges investors 79 basis points a year in fees (see: all the Healthcare ETFs here).

Why the Move?

The biotech corner of the broad healthcare sector has been an area to watch lately, given the astounding performance at the start of the fourth quarter. A slew of positive news, including study results, regulatory backdrop and deal activities, and better-than-expected corporate earnings have fueled the sector’s rally. Uncertainty over the trade deal has added to its strength as the sector is non-cyclical in nature, which provides a defensive tilt to the portfolio.

More Gains Ahead?

Currently, BBC has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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