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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 radar. The fund just hit a 52-week high, and is up about 84% from its 52-week low price of $22.92/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 in biotechnology companies with a primary product offering that is in a phase 1, phase 2 or phase 3 clinical-trial stage of development. 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 positive developments in coronavirus treatment. Novavax (NVAX - Free Report) is the latest drugmaker to start the phase 1 clinical trial of the coronavirus vaccine candidate called NVX-CoV2373 and has enrolled the trial’s first participants, with preliminary results expected in July. Merck (MRK - Free Report) also joined the COVID-19 race with the potential development of two vaccines and one antiviral treatment.

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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Virtus LifeSci Biotech Clinical Trials ETF (BBC) - free report >>