Biotech Boom Sends One ETF Flying to Close the Year

Biotech Boom Sends One ETF Flying to Close the Year

Assessment

Interactive Video

Business, Biology

University

Hard

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The Alps Medical Breakthroughs ETF, trading under the ticker S BIO, focuses on biotech and pharmaceutical companies with drugs in advanced FDA clinical trials. It includes US-listed small and mid-cap companies with sufficient cash reserves. While the ETF offers potential high rewards, it also carries significant risks if companies fail to deliver. With $200 million in assets and a lower expense ratio than its rival BBC, S BIO has outperformed since its launch in December 2014, yielding a 65% return, surpassing the S&P 500 biotech index. It receives a favorable rating in Bloomberg's traffic light system.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary focus of the Alps Medical Breakthroughs ETF?

Biotech and pharmaceutical companies

Real estate investments

Renewable energy projects

Technology startups

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a requirement for companies included in the S BIO fund?

Must be headquartered in Europe

Must have enough cash to last 24 months

Must have a market cap over $1 billion

Must be listed on the New York Stock Exchange

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following companies is NOT mentioned as part of the ETF's investment?

Ligand Pharmaceuticals

Acadia Pharmaceuticals

United Therapeutics

Tesla Inc.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential downside of investing in the ETF?

Guaranteed returns

High risk if companies fail to deliver

No risk involved

Fixed interest rates

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How has the ETF performed compared to the S&P 500 biotech index since its launch?

Performed equally

Underperformed significantly

Outperformed

No data available