ETF Expert

Amgen’s got a “Phase 3″ drug in its pipeline called, “Denosumab.” It has possibilities for a range of conditions from osteoporosis to treatment-induced bone loss to rheumatoid arthritis.

Genentech has a “Phase 3″ hopeful with “Bevacizumab” (Avastin). This one’s designed to interfere with the blood supply to cancerous tumors. It is believed that if you cut off a tumor’s blood supply, you can cut off its ability to grow or spread.

Genzyme has an already-approved Leukemia fighter, ”Alemtuzumab,” at a Phase 3 level for use in fighting auto-immune diseases like multiple sclerosis. Researchers are finding that alemtuzumab may prevent the advancement of early stage active relapsing-remitting multiple sclerosis (RRMS) as well as restore lost functioning caused by the disease.

Evil drug companies out to make gobs of cash for shareholders? Or tireless warriors fighting a never-ending battle to increase the duration and quality of life? Truth is… the motive doesn’t matter.

Consider the 2-year performance of 3 popular biotech ETFs and 3 popular health care ETFs. In spite of broad-based health care’s anemic efforts to forge higher in 2009, it appears that biotech may be the better way to play the aging demographic game.

Biotech’s significant outperformance over broader healthcare during the bear market may suggest a recalibration of risk.  Biotech used to be one of the most risky investment areas; however, diversified biotech ETFs not only mitigate some of that risk, but an aging world population is helping drug creators secure more believers.

First Trust Biotech (FBT) continues to be a  bit of enigma in its outperformance. However, it becomes less enigmatic when one investigates how FBT reconstitutes its equal-weighted index quarterly.

If you’d like to learn more about ETF investing… then tune into ”In the Money With Gary Gordon.” You can listen to the show “LIVE”, via podcast or on your iPod.

Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC, may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.

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