Daily Stock Pick: August 19th, 2021

Stocks were lower in early trading today amid concern that the Federal Reserve could initiate a taper in bond buying sooner than expected.  Minutes from the July 27-28 FOMC meeting revealed that Fed officials felt their employment benchmark for reducing emergency monthly purchases “could be reached this year” but seemed to disagree on other key aspects of where monetary policy should go in the transition from the pandemic crisis.  

“The minutes reflect a Fed that is prepared to accelerate its taper timeline to perhaps the next few months,” said Sean Bandazain, investment analyst at Cornerstone Wealth.  “Both the Fed and market participants learned lessons from the Taper Tantrum.  While we expect less of a surprise this time around, there is still reason to believe we will see volatility throughout areas of the market with high sensitivity to interest rates.”

One area of the market that can offer hefty returns regardless of what interest rates are doing is biotech.  It’s not unheard of for a winning biotech stock to produce 10x or 20x returns in a concise period of time.  But biotech companies are difficult to evaluate due to the speculative nature of their technologies and the breadth of knowledge, experience, and education required to understand them.  Although this is true for all industries, it is particularly true for biotech. 

Specifically, genomics is one niche within the biotech group that could offer unimaginable returns. Still, the technology is so new and advanced that many investors shy away from companies making astounding advancements.  

One solution is to delegate individual stock picking to the professionals.  In today’s trade, we’ll focus on an exchange-traded fund (ETF) that provides an opportunity for investors who are looking to gain access to companies at the forefront of genomics innovation. 

iShares Genomics Immunology and Healthcare ETF (IDNA)

IDNA holds a concentrated portfolio of global companies in the biopharmaceutical and healthcare equipment and services industries that could benefit from the long-term growth and innovation in genomics, immunology, and bioengineering. The fund is passively managed, and holdings are weighted by market cap and are constrained such that no individual security exceeds the 4% weight of the portfolio. The index rebalances semi-annually.

It’s worth noting that IDNA beat Cathie Woods’ ARK Genomic Revolution ETF (ARKG) in the first ten weeks of 2020 when the coronavirus outbreak and investors rocked global markets were eagerly hunting for potential profit in companies researching treatment and vaccines. 

  • Weighted Average Market Cap  $22.53B
  • Price / Earnings Ratio   -39.69
  • Price / Book Ratio  4.76
  • YTD Daily Total Return  -2.55%
  • YTD Return  -0.96%
  • Yield  0.25%
  • Expense Ratio  0.47%
  • Net Assets   297.12M
  • Number of Holdings  50

Top Holdings:  BioNTech SE BNTX, BeiGene Ltd BGNE, Fate Therapeutics FATE

Where to invest $1,000 right now...

Before you consider buying IDNA, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not IDNA.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...