BIS - UltraShort Nasdaq Biotechnology ETF

Spotlight on BIS ETF

BIS ETF

ETF Ticker: BIS

Name: The Ultra Short Nasdaq Biotechnology ETF

ETF Provider: ProShares

Asset Tracked or Index Benchmark: NASDAQ Biotechnology Index

ETF Category: Biotechnology ETF, Leveraged ETF, Inverse ETF, Industry ETF

Description of BIS: ProShares Ultra Short Nasdaq Biotechnology seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the NASDAQ Biotechnology Index.

This Short ProShares ETF seeks a return that is -2x the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their holdings consistent with their strategies, as frequently as daily

BIS tracks the NASDAQ Biotechnology Index, both of which include biotechnology assets as well as some pharmaceutical equities. However, IAU is seeking twice the daily return of the underlying index as well as tracking it in the opposite direction. So as the index falls in value, BIS rises.

The sister-ETF for BIS is BIB (BIB - Ultra NASDAQ Biotechnology ETF), which tracks the same index also looking for a 2x daily return.

However, BIB is not an inverse ETF and moves in the same direction as the underlying index.

Top Holdings in BIS: 

  • ISHARES BIOTECH (IBB) SWAP BANK OF AMERICA NA
  • NASDAQ BIOTECHNOLOGY INDEX SWAP CITIBANK NA
  • ISHARES BIOTECH (IBB) SWAP MORGAN STANLEY & CO. INTERNATIONAL PLC
  • NASDAQ BIOTECHNOLOGY INDEX SWAP CREDIT SUISSE INTERNATIONAL
  • NASDAQ BIOTECHNOLOGY INDEX SWAP MORGAN STANLEY & CO. INTERNATIONAL PLC
  • NASDAQ BIOTECHNOLOGY INDEX SWAP DEUTSCHE BANK AG
  • NASDAQ BIOTECHNOLOGY INDEX SWAP UBS AG
  • NASDAQ BIOTECHNOLOGY INDEX SWAP SOCIETE GENERALE
  • NASDAQ BIOTECHNOLOGY INDEX SWAP BANK OF AMERICA NA
  • NET OTHER ASSETS AND CASH

Inception Date of BIS: April 17th, 2010

Lists of ETFs that Include BIS:

For full information about this fund, be sure to visit the full BIS fact sheet on the Proshares website.

Keep in mind that you have to be disciplined in your selection process of any exchange-traded product. While ETFs and ETNs offer a lot of advantages, they are not without risk. No asset is risk-free. So be sure to research any exchange trade products on this list before making any trades.

Look under the hood and see what is in the ETF, take a look at its performance history and see how it reacted to different market conditions. And if you have any questions or concerns, be sure to consult a financial professional such as a financial advisor or your broker.

However, once you have conducted your due diligence, then I wish you success (and profits) for all of your trades.

Disclaimer - At the time of publication of this article, I do not have any open positions in BIS - Mark Kennedy

Interested in research more Biotechnology ETFs, then take a look at these...

  • BBH - Market Vectors Biotech ETF
  • BIB - Ultra NASDAQ Biotechnology ETF
  • FBT - First Trust NYSE Arca Biotech Index ETF
  • IBB - iShares Nasdaq Biotechnology ETF
  • PBE - PowerShares Dynamic Biotech & Genome ETF
  • XBI - SPDR S&P Biotech ETF
  • BBC - Bio Shares Biotechnology Clinical Trials Fund
  • BBP - Bio Shares Biotechnology Products Fund
  • LABS - Direxion Daily S & P Biotech Bear 1X Shares ETF
  • LABD - Direxion Daily S&P Biotech Bear 3X Shares ETF
  • LABU - Direxion Daily S&P Biotech Bull 3X Shares ETF
  • UBIO - UltraPro Nasdaq Biotechnology ETF
  • ZBIO - UltraPro Short Nasdaq Biotechnology ETF