Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.
I sold at 534 and was pissed when it was in the 550's... do I feel good about that now.
Are there any ETF's out there that specialize in FDA drug approval candidates?
I doubt it, as that would probably be the most risky, volatile ETF out there.
I'm not particularly knowledgeable about constructing and managing ETF's, so somebody more educated can certainly correct me here. But it seems like, volatility aside, it would be tricky because of the sheer number of (often small, not always public) companies, and the fact that the pool of relevant companies is fluid and high-turnover by definition. I would think (again, speaking as somebody who knows very little about the actual mechanics) that it it were even doable, it would be human-resource intense and would probably have a seriously high expense ratio.
You'd also need somebody a lot smarter to me to come up with a definition of "drug approval candidates" that would achieve the goal I gather you presumably would be hoping to achieve. Read broadly, your definition would include companies like GILD, AMGN, GENE, Pfizer, J&J, etc., which are always going to have multiple drugs in the pipeline. I assume, though, you're envisioning something more aligned with the aggregate fortunes of developing companies whose fortunes are closely tied to the prospects of one drug or a few drugs, and thus are likely to spike or crash based on the outcome of the FDA approval process?
Interesting concept, I just have no idea how one would do it.
Why would you want to do it as an ETF?
the traditional fund structure makes much more sense. There just aren't that many FDA approvals going on at any one time, I can't see why it would benefit from being able to be actively traded more than once a day.
This is kind of what the FDA's calendar looked like in 2013:
Per OTC's post below, the FDA has a calendar which I have used from time to time to mine for speculation.
It would be nice, like you mention, to shift the labor intensiveness of it onto someone else and still get he benefit. I would imagine the people running the ETF would be moving in and out of positions (big and small cap) as the FDA calendar was worked thru. Days with approvals would see the ETF jump, being the net result.
You might be right, a fund might make more sense, even if there was more load. I just notice how much volatility happens around stocks on that calendar and think there has got to be a better way to trade it.
I guess the answer is no, nothing exists.
Red red red red red red
30 of my holdings down today, only 5 up.
Haven't been paying much attention to market since last week, happy with my positions and have no cash so just waiting it out
Do have a little Roth cash that I forgot about until today, probably pick up something weed related
Well, FB is up after hours, 10%. Small silver lining.
Putting in buys with low low prices and some are actually going through lol.
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