Why invest in the iShares NASDAQ Biotech index stock?
Cost-effectiveness.
The annual management fees of the iShares NASDAQ Biotech index stock are substantially less than most mutual funds. And while trading will generate brokerage commissions, the savings from lower annual fees can help offset these costs.1
Tax efficiency.
Taxable changes to the iShares NASDAQ Biotech index stock portfolios typically occur only when changes are made to the benchmark indexes. For this reason, capital gains tax liability can be expected to be lower for iShares holders than that for holders of actively managed funds.2
Diversification.
With the iShares NASDAQ Biotech index stock, you get the same diversification benefits of index funds plus the liquidity, ease of use and "tradability" of stocks.
Transparency.
When you invest in the iShares NASDAQ Biotech index stock, you'll know what's in your portfolio. The iShares NASDAQ Biotech index stock tracks the underlying index, the components of which are disclosed every trading day. Mutual funds are required to reveal their entire holdings only twice a year.
