Analysis: Positive

From Morningstar: 2024-08-05 11:00:00

This week, we are focusing on analyzing biotech equity funds to identify the best products based on quantitative criteria. Despite a challenging 2022, the biotech category has shown strong recovery in recent years and months, potentially linked to expected central bank interest rate cuts.

The analysis is purely quantitative, aimed at helping investors choose funds based on their preferred criteria. We will specifically look at UK-available funds with over five years of performance history for our evaluation of the best biotechnology sector equity funds.

Our criteria will consider performance, consistency, risk, volatility, risk-return, and costs. We have identified six funds meeting the requirements, and will rank them based on the mentioned criteria using data calculated as of June 30, 2024.

The evaluation will cover performance over five years, consistency based on 36-month periods with emphasis on recent data, volatility ranking over the past five years, risk assessment via five-year maximum loss, return-risk analysis using the Sharpe ratio, and cost comparison for the cheapest funds in the category.



Read more at Morningstar: How to Pick the Best European Biotech Funds