Top Biotech ETFs to Watch in 2025

Top Biotech ETFs to Watch in 2025

Biotechnology is one of the most dynamic sectors in the financial markets, fueled by innovations in gene therapy, precision medicine, diagnostics, and industrial biotech. If you want exposure to this fast-evolving industry without picking individual stocks, knowing which are the top biotech ETFs are key. These ETFs provide access to both established leaders and high-potential innovators, allowing investors to balance growth opportunities and risk.

In 2025, biotech ETFs have been gaining attention due to renewed M&A activity, positive clinical trial outcomes, and selective regulatory easing. However, each ETF differs in structure, holdings, and volatility, so choosing the right one is crucial.

Why Biotech ETFs Deserve A Place in Your Portfolio

Biotech stocks are inherently event-driven. Clinical trial results, regulatory approvals, and mergers or acquisitions can create rapid price swings. ETFs allow investors to participate in innovation while spreading single-stock risk, making them an efficient way to access the sector.

Investing in top biotech ETFs gives you exposure to both large-cap, stable companies and smaller, high-potential firms that could benefit from breakthrough discoveries or market-moving news. Understanding the difference between these fund types is key to matching your investment strategy with your risk tolerance.

Leading Biotech ETFs in 2025

Here’s a breakdown of top biotech ETFs that investors are watching in 2025:

1. iShares Nasdaq US Biotechnology UCITS ETF (IE00BYXG2H39)

• Fund size: €607M
• TER: 0.35% p.a.
• Structure: Accumulating, optimized sampling, Ireland
• Focus: Broad Nasdaq biotech exposure, primarily large-cap
• Performance: 1-year +9.21%, 3-year +13.61%

This ETF offers broad, diversified exposure to large-cap biotech names, making it suitable as a core long-term holding. Its top-heavy structure means it moves more steadily, reacting less dramatically to single-event news.

2. Invesco Nasdaq Biotech UCITS ETF (IE00BQ70R696)

• Fund size: €354M
• TER: 0.40% p.a.
• Structure: Accumulating, unfunded swap, Ireland
• Focus: Similar broad Nasdaq exposure with slightly smaller fund size
• Performance: 1-year +9.15%, 3-year +13.01%

Comparable to iShares, this fund is suitable for core sector exposure, offering a balance of growth and stability.

3. Global X Genomics & Biotechnology UCITS ETF (IE00BM8R0N95)

• Fund size: €15M
• TER: 0.50% p.a.
• Structure: Accumulating, full replication, Ireland
• Focus: Small/mid-cap genomics and biotech innovators
• Performance: 1-year +3.27%, 3-year -25.7%

GNOM provides a high-risk, high-reward profile. With only 50 holdings, a single major discovery or acquisition can dramatically move the ETF’s price, making it attractive for tactical investors.

4. WisdomTree BioRevolution UCITS ETF USD Acc (IE000O8KMPM1)

• Fund size: €8M
• TER: 0.45% p.a.
• Structure: Accumulating, full replication, Ireland
• Focus: Innovative biotech companies
• Performance: 1-year +4.88%, 3-year -16.96%

This fund blends small/mid-cap exposure with thematic focus on bio-revolution technologies, offering potential for outsized gains in breakthrough sectors.

5. Alps Medical Breakthroughs ETF (SBIO)

• Fund size: ~$100M
• Holdings: ~100 stocks, top 10 <30%
• Performance: Up 31% since April 2025
• Focus: Event-driven small-cap biotech

SBIO is highly sensitive to clinical and M&A catalysts, providing an opportunity for aggressive traders seeking rapid growth in the biotech space.

2025 Market Trends and ETF Performance

Biotech ETFs have shown distinct performance patterns this year. Smaller, thematic ETFs like GNOM and SBIO have rebounded sharply due to promising scientific discoveries and mergers & acquisitions, while larger ETFs like iShares and Invesco have moved more steadily.

This contrast highlights how fund size, holdings, and sector dynamics shape returns. Investors can use this insight to select ETFs that match their risk tolerance and investment objectives.

Comparing Large-Cap vs Small/Mid-Cap ETFs

While all biotech ETFs provide exposure to the sector, not all funds behave the same. Performance, volatility, and growth potential can differ significantly depending on whether the ETF focuses on large-cap, established biotech companies or smaller, high-potential innovators. To better understand these differences, let’s compare how large-cap and small/mid-cap biotech ETFs have performed in 2025.

Key takeaway: Smaller, thematic ETFs can deliver rapid gains from discoveries or M&A, while large-cap ETFs provide steady, diversified exposure to established biotech companies.

Choosing the Right Biotech ETF

1. Define your horizon:
   • Short-term trades: Small/mid-cap or event-driven ETFs (GNOM, SBIO)
   • Long-term sector exposure: Market-cap-weighted ETFs (iShares, Invesco)
2. Assess risk tolerance:
   • Higher volatility = potential for outsized gains and losses
   • Lower volatility = steadier returns
3. Check costs and structure:
   • TER ranges from 0.35%–0.50% p.a.
   • Accumulating vs distributing, replication method, and domicile affect efficiency and tax considerations.
4. Monitor catalysts:
   • Regulatory changes, M&A activity, and clinical trial results can drive performance, especially in smaller ETFs.

Final Thoughts

Biotech ETFs offer a powerful, diversified way to invest in medical innovation. In 2025, small-cap and thematic ETFs have delivered sharp gains, while large-cap ETFs provided steady, stable returns. By understanding fund size, holdings, replication methods, and catalyst sensitivity, investors can choose the top biotech ETFs that best align with their goals and risk profile.

Whether your goal is steady growth or tactical exposure to breakthroughs, top biotech ETFs in 2025 provide multiple pathways to participate in the next wave of healthcare innovation.