Biotechnology stocks get a lot of attention. It's easy to be enamored with the curing of disease, and the financial results that could follow the successful introduction of a new treatment can be game-changing.
But, alas, it isn't as simple as picking a few promising names with lucrative treatment pipelines, sitting back, and watching the positive results roll in. Biotechnology certainly has the potential to be a high-reward investment, but there are extra risks tethered to the industry. Many upstart companies hold a lot of promise, but the path to treatment approval and sales growth is fraught with legal disputes, regulatory and Health concerns, and -- oh yeah -- all the other challenges involved with running a business!
Enter the iShares Nasdaq Biotechnology Index Fund (NASDAQ: IBB). If the ins and outs of the biotech industry are beyond your scope of expertise (like myself), or you lack the time to sift through proposed treatments, trials, and regulatory approval (that's me, too), this ETF could be worth a look.