The IBB is the iShares NASDAQ Biotechnology ETF. The IBB's allocation is 66% biotech and 28% pharmaceuticals. The IBB has been ravaged by the political firestorm around drug pricing, and has traded flat for the past year. This may be an interesting sector to overweight since, in time, strong fundamentals should overcome the negative headlines. The weight of the health care sector in the S&P 500 Index is 13.7%, the pharmaceutical industry is 5%, and the biotechnology industry is 2.7%. The fee structure of the fund is 47 bps which isn't particularly cheap, but I don't think it's prohibitive. The IBB is a growth oriented investment as opposed to value oriented. The geographic focus is the United States with over 98% domestic holdings. The IBB is more volatile than the S&P with a beta in the 1.2-1.4 area. Although the beta is high, the correlation to the S&P has not been high relative to may other sectors. The IBB is market cap weighted, and therefore is heavily weighted toward large cap biotech stocks. The top 10 holdings represent 58% of the ETF. The IBB might be attractive to buy below $270 where it has repeatedly found support. Positive long-term fundamentals of an aging population and promising new medicines are strong, and I think the headlines can only hold the sector down temporarily.