5 Small-cap Biotech ETFs to Watch (Updated 2024)

AUM: US$87.99 million

The ProShares Ultra NASDAQ Biotechnology ETF was launched in April 2010 and is leveraged to offer twice daily long exposure to the broad-based NASDAQ Biotechnology Index, making it an ideal choice “for investors with a bullish short-term outlook for biotechnology or pharmaceutical companies.” However, analysts also advise investors with a low risk tolerance or a buy-and-hold strategy against investing in this fund due to its unique nature.

Of the 218 holdings in this ETF, the top biotech stocks in the ETF are Regeneron Pharmaceuticals (NASDAQ:REGN) at a 6.01 percent, Gilead Sciences (NASDAQ:GILD) at 5.97 percent and Amgen (NASDAQ:AMGN) at 5.49 percent.

AUM: US$82.83 million

The Global X Genomics & Biotechnology ETF tracks genomic science stocks, such as companies focused on gene editing, genomic sequencing, genetic medicine and therapy, computational genomics and biotechnology. This fund was first introduced to the market in April 2019 and invests at least 70 percent of its assets in mid- and small-cap companies.

There are 43 holdings in this biotech fund. Its top holdings include Alnylam Pharmaceuticals (NASDAQ:ALNY) at a weight of 6.73 percent, Avidity Bioscience (NASDAQ:RNA) with a weight of 5.29 percent and Legend Biotech (NASDAQ:LEGN) at 4.52 percent.

AUM: US$81.7 million

Launched in November 2023, the Tema Obesity and Cardiometabolic ETF tracks biotech stocks with a focus on diabetes, obesity and cardiovascular diseases. The fund was renamed on March 25; previously it was known as the Tema Cardiovascular and Metabolic ETF. More than three-quarters of its holdings are based in the US.

There are 46 holdings in this biotechnology fund, with about a 50/50 split between small- to mid-cap stocks and large-cap companies. Its top holdings include Alnylam Pharmaceuticals, Amgen at 5.65 percent and Eli Lilly and Company (NYSE:LLY) at 5.56 percent.

AUM: US$47.94 million

The Tema Oncology ETF provides exposure to biotech companies operating in the oncology industry. It includes companies developing a range of cancer treatments, including CAR-T cell therapies and bispecific antibodies.

Launched in August 2023, this biotechnology fund has 49 holdings, with about 46 percent being small- to mid-cap stocks and 4.6 percent being micro stocks. Among its top holdings are Regeneron Pharmaceuticals at a weight of 6.1 percent, AstraZeneca (NASDAQ:AZN) at 5.87 percent and argenx SE (NASDAQ:ARGX) at 4.55 percent.

AUM: US$20.88 million

The Virtus LifeSci Biotech Products ETF tracks the performance of US-listed biotech stocks with at least one drug therapy approved by the US Food and Drug Administration or in the late stages of clinical development.

Over 70 percent of its holdings are in small- and mid-cap stocks and over 85 percent of its holdings are US companies. Its top holdings are Alnylam Pharmaceuticals at 2.64 percent, Mirum Pharmaceuticals (NASDAQ:MIRM) at 2.35 percent and ADMA Biologics (NASDAQ:ADMA) at 2.32 percent.