{"id":3630,"date":"2025-10-08T09:18:20","date_gmt":"2025-10-08T09:18:20","guid":{"rendered":"https:\/\/profitalarm.com\/index.php\/2025\/10\/08\/5-small-cap-biotech-etfs-to-watch-in-2025\/"},"modified":"2025-10-08T09:18:20","modified_gmt":"2025-10-08T09:18:20","slug":"5-small-cap-biotech-etfs-to-watch-in-2025","status":"publish","type":"post","link":"https:\/\/profitalarm.com\/index.php\/2025\/10\/08\/5-small-cap-biotech-etfs-to-watch-in-2025\/","title":{"rendered":"5 Small-cap Biotech ETFs to Watch in 2025"},"content":{"rendered":"<\/p>\n

Thanks to exchange-traded funds (ETFs), investors don\u2019t have to be tied to one specific stock. When it comes to b<\/strong>iotech ETFs, they give sector participants exposure to many biotech companies via one vehicle.<\/strong><\/p>\n

ETFs are a popular choice as they allow investors to enter the market more safely compared to investing in standalone stocks. A key advantage is that even if one company in the ETF takes a hit, the impact will be less direct.<\/p>\n<\/p>\n

All other figures were also current as of that date. Read on to learn more about these investment vehicles.<\/p>\n

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1. ALPS Medical Breakthroughs ETF (ARCA:SBIO)<\/a><\/h3>\n

AUM:<\/strong> US$95.57 million<\/p>\n

Launched in December 2014, the ALPS Medical Breakthroughs ETF tracks small- and mid-cap biotech stocks that have one or more drugs in either Phase II or Phase III US FDA clinical trials. Its holdings must have a market cap between US$200 million and US$5 billion.<\/p>\n

There are 102 holdings in this biotech fund, with about 40 percent being small- and micro-cap stocks. Its top holdings include Cytokinetics (NASDAQ:CYTK) at a weight of 3.62 percent, Merus (NASDAQ:MRUS) at 3.51 percent and Avidity Biosciences (NASDAQ:RNA) at 3.43 percent.<\/p>\n<\/div>\n

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2. Tema Oncology ETF (NASDAQ:CANC)<\/h3>\n

AUM:<\/strong> US$82.42 million<\/p>\n

The Tema Oncology ETF provides exposure to biotech companies operating in the oncology industry. Launched in August 2023, it includes companies developing a range of cancer treatments, including CAR-T cell therapies and bispecific antibodies.<\/p>\n

There are 51 holdings in this biotechnology fund, of which just over half are small- to mid-cap stocks. Among its top holdings are Revolution Medicines (NASDAQ:RVMD) at a weight of 6.29 percent, Eli Lilly and Company (NYSE:LLY) at 5.47 percent and Genmab (NASDAQ:GMAB) at 5.32 percent.<\/p>\n<\/div>\n

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3. Direxion Daily S&P Biotech Bear 3x Shares (ARCA:LABD)<\/h3>\n

AUM:<\/strong> US$78.98 million<\/p>\n

The Direxion Daily S&P Biotech Bear 3x Shares ETF is designed to provide three times the daily return of the inverse of the S&P Biotechnology Select Industry Index, meaning that the ETF rises in value when the index falls and falls in value when the index rises. Leveraged inverse ETFs are designed for short-term trading and are not suitable for holding long-term. They also carry a high degree of risk as they can be significantly affected by market volatility. <\/p>\n

Unlike the other ETFs on this list, LABD achieves its investment objective through holding financial contracts such as futures rather than holding individual stocks. <\/p>\n<\/div>\n

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4. ProShares Ultra NASDAQ Biotechnology (NASDAQ:BIB)<\/h3>\n

AUM:<\/strong> US$62.42 million<\/p>\n

The ProShares Ultra NASDAQ Biotechnology ETF, launched in April 2010, is leveraged to offer twice daily long exposure to the broad-based NASDAQ Biotechnology Index, making it an ideal choice \u201cfor investors with a bullish short-term outlook for biotechnology or pharmaceutical companies.\u201d 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.<\/p>\n

Of the 260 holdings in this ETF, the top biotech stocks are Vertex Pharmaceuticals (NASDAQ:VRTX) at a 5.05 percent weight, Amgen (NASDAQ:AMGN) at 5.01 percent and Gilead Sciences (NASDAQ:GILD) at 4.93 percent.<\/p>\n<\/div>\n

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5. Tema Heart and Health ETF (NASDAQ:HRTS)<\/h3>\n

AUM:<\/strong> US$51.68 million<\/p>\n

Launched in November 2023, the Tema GLP-1 Obesity and Cardiometabolic ETF tracks biotech stocks with a focus on diabetes, obesity and cardiovascular diseases. The fund was renamed on March 25 from Tema Cardiovascular and Metabolic ETF, and again on June 27 from the GLP-1 Obesity and Cardiometabolic ETF.<\/p>\n

There are 47 holdings in this biotechnology fund, with about 75 percent being large-cap stocks and 22 percent mid-cap. About three-quarters of its holdings are based in the US. Its top biotech holdings are Eli Lilly and Company at a 8.47 percent weight, AstraZeneca (NASDAQ:AZN) at 4.39 percent and Abbott Laboratories (NYSE:ABT) at 4.58 percent.<\/p>\n<\/div>\n

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n

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