BIB
(ProShares Ultra Nasdaq Biotechnology) is an exchange-traded fund
(ETF) managed by ProShares Advisors LLC. The ETF seeks to provide
investors with twice (2x) the daily return of the Nasdaq Biotechnology
Index, which is a benchmark that tracks the performance of
biotechnology and pharmaceutical companies listed on the Nasdaq Stock
Market.
As a leveraged ETF, BIB uses financial derivatives and
other investment strategies to amplify the daily returns of the
underlying index. This means that if the Nasdaq Biotechnology Index
rises by 1% on a given day, BIB should deliver a return of 2% (before
fees and expenses). However, if the index falls by 1%, BIB would be
expected to deliver a loss of 2%.
As of September 2021, the BIB
ETF had total net assets of around $2.5 billion and was invested in a
diversified portfolio of biotechnology and pharmaceutical companies.
The fund's top holdings included companies such as Amgen, Gilead
Sciences, and Regeneron Pharmaceuticals.
In terms of
performance, BIB has delivered strong returns over the long term, with
an annualized return of around 22% since its inception in April 2007
(as of September 2021). However, investors should keep in mind that
leveraged ETFs like BIB can be highly volatile and carry significant
risks. Additionally, the ETF charges a relatively high expense ratio
of 0.95%, which is higher than the average expense ratio for ETFs in
the biotechnol
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