At a glance
BBP charges 0.34% a year, below the 0.44% average of the 7 funds most like it (the 2nd cheapest of 8). It has $98.5M in assets, the 7th largest of that group. Over the past year it returned +40.3% with distributions reinvested (S&P 500: +11.5%), 3rd of those 8 funds; over three years it returned +32.3% a year. At its worst it fell 30.5% in the 2020 crash (S&P 500: 33.7%) and 31.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 3 months after the lows. Its ten largest positions make up 19.6% of the fund, out of 69 in all.
The short version
Virtus Biotech ETF (BBP), formerly the Virtus LifeSci Biotech Products ETF, tracks the LifeSci Biotechnology Products Index. The index holds U.S.-listed biotech companies whose main drug already has approval from the U.S. Food and Drug Administration (FDA). It leaves out companies whose lead drug is still in trials, along with big drugmakers and device makers, and it gives every stock an equal weight. Its 0.34% expense ratio is below the 0.44% average of similar funds.
Price history
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BBP +40.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BBP official prospectus, to Dec 31, 2025 | — | +32.77% | — | +8.40% | +10.01% | — |
| BBP price data to Oct 27, 2026 | +31.2% | +40.3% | +32.3% | +15.6% | +13.6% | +12.6% |
- Over the year to Oct 27, 2026, BBP returned +40.3%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +15.6% and its 10-year +13.6%.
- In the 2020 COVID crash it fell 30.5% and regained its old high 1.3 months after the low.
- Its worst full calendar year was 2018 (-13.9%); its best was 2025 (+33.1%).
- The deepest fall in its price history was 44.3% (Feb 8, 2021 to May 9, 2022), recovered by Feb 27, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +31.3% | — |
| 2025 | +33.1% | +32.77% |
| 2024 | +3.3% | +3.62% |
| 2023 | +17.9% | +17.44% |
| 2022 | +0.8% | +0.97% |
| 2021 | -8.2% | -8.24% |
| 2020 | +22.2% | +22.19% |
| 2019 | +24.7% | +24.88% |
| 2018 | -13.9% | -13.80% |
| 2017 | +24.1% | +23.79% |
| 2016 | +6.3% | +6.49% |
| 2015 | +19.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 27.5% over that stretch · deepest drop along the way 30.5%, back to its old high 1.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8.4% over that stretch · deepest drop along the way 31.4%, back to its old high 3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2017 | $0.0700 | -82.5% |
| 2015 | $0.4000 |
What's inside
As of Jul 31, 2026, the fund held 69 securities; the ten largest made up 19.61% of assets.
| Holding | Weight | |
|---|---|---|
| CRINETICS PHARMACEUTICALS INC | 3.34% | |
| KINIKSA PHARMACEUTICALS INTERNATIONAL PLC | 1.97% | |
| VERASTEM INC | 1.95% | |
| PRECIGEN INC | 1.94% | |
| OMEROS CORP | 1.87% | |
| NUVATION BIO INC | 1.77% | |
| REGENERON PHARMACEUTICALS | 1.72% | |
| PROTAGONIST THERAPEUTICS INC | 1.71% | |
| ACADIA PHARMACEUTICALS INC | 1.69% | |
| BRIDGEBIO PHARMA INC | 1.65% | |
| BEONE MEDICINES LTD | 1.65% | |
| XERIS BIOPHARMA HOLDINGS INC | 1.64% | |
| HALOZYME THERAPEUTICS INC | 1.64% | |
| LIQUIDIA CORP | 1.63% | |
| IMMUNOCORE HOLDINGS PLC | 1.61% |
By country
United States 83.89%United Kingdom 3.58%Cayman Islands 3.58%Switzerland 2.97%Bermuda 1.55%By asset type
Stocks 99.8%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $32.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.22%, +11.38%, -2.67%.
How it works
BBP is an index fund. It puts at least 80% of its assets into the stocks in the LifeSci Biotechnology Products Index, which is sponsored by LifeSci Index Partners and calculated daily by Indxx. To qualify, a company must have common stock listed in the U.S., be classed as pharmaceuticals and biotechnology, be worth at least $500 million and trade at least $2 million a day on average over six months. An index committee then uses SEC filings and FDA documents to remove 12 types of company, including large and specialty drugmakers, vaccine makers, medical device firms and tools suppliers.
Next, the committee checks each company's "lead drug," meaning its main product. Only companies whose lead drug has FDA approval stay in. Companies with drugs still in clinical trials or earlier research are dropped. As of December 31, 2025, the index had 63 stocks.
The index is rebuilt twice a year, after June 15 and December 15, and every stock gets the same weight. Weights drift between rebuilds. As of July 31, 2026, the fund held 69 stocks, with Crinetics Pharmaceuticals the largest at 3.3% and the top 10 making up 19.6%. A stock can be dropped early after a merger agreement or bankruptcy. The fund uses no leverage, options or derivatives.
What it really costs
- BBP charges 0.34% a year, versus an average of 0.44% for the similar funds below (2nd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $35 in the first year and $431 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BBP | $35 | $109 | $191 | $431 |
In a retirement portfolio
BBP holds only one industry, weighted toward smaller companies, and its swings have been large enough that it is better suited to a small slice of a portfolio than to the center of one.
BBP offers focused exposure to biotech companies with approved drugs, but it moves like a volatile single-industry stock fund. It launched in December 2014, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 30.5% in less than a month, then regained its peak by April 24, 2020. In 2022 it dropped 31.4% between January 3 and May 9. Its deepest fall was 44.3%, from February 2021 to May 2022, and it took until February 27, 2024 to recover. Its worst calendar year was 2018, when it lost 13.8%. Someone forced to sell during a slump like that would lock in losses. It paid no income in the year through October 27, 2026. Its expense ratio is 0.34%. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want biotech exposure limited to companies whose lead drug has FDA approval, rather than firms still in clinical trials.
- People who prefer equal weighting: the top 10 of its 69 holdings made up just 19.6% of the fund as of July 31, 2026.
- Cost-conscious investors: its 0.34% expense ratio is below the 0.44% average of similar biotech funds.
Look elsewhere if
- Anyone who needs income: the fund paid no distributions in the year through October 27, 2026.
- Investors uneasy with deep drops: it fell 44.3% from February 2021 to May 2022 and didn't recover until February 2024.
- Those who want a large fund: net assets were about $98.5 million as of July 31, 2026, against $10.7 billion for XBI.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| BBP this fund | — | 0.34% | $98.5M | +40.3% | +32.3% |
| XBI SPDR S&P Biotech ETF | 41% | 0.35% | $10.73B | +39.3% | +34.4% |
| IBB iShares Biotechnology ETF | 36% | 0.45% | $9.09B | +35.3% | +23.9% |
| IBBQ Invesco Nasdaq Biotechnology ETF | 35% | 0.19% | $96.4M | +36.3% | +26.1% |
| PBE Invesco Biotechnology & Genome ETF | 28% | 0.58% | $281.9M | +38.6% | +25.2% |
| FBT First Trust NYSE Arca Biotechnology Index F… | 27% | 0.56% | $2.81B | +43.6% | +27.7% |
| FXH First Trust Health Care AlphaDEX Fund | 20% | 0.6% | $1.05B | +19.7% | +15.1% |
| BBH VanEck Biotech ETF | 20% | 0.35% | $395.6M | +41.0% | +20.9% |
Questions investors ask
Does BBP pay a dividend?
No. BBP made no distributions in the year through October 27, 2026, so its yield was 0%. Its holdings are mostly small and mid-sized biotech companies, and companies like these usually put their cash into research and drug launches instead of paying dividends. Any return from BBP comes from changes in its share price, so it may not suit someone who wants regular income from a holding.
What's the difference between BBP and XBI?
Both are biotech index funds, and about 41% of their holdings overlap. BBP only holds companies whose lead drug has FDA approval, and it excludes groups like large drugmakers and device makers. Costs are almost the same: 0.34% for BBP and 0.35% for SPDR S&P Biotech ETF (XBI). XBI is far larger, with $10.7 billion in net assets as of June 30, 2026, against about $98.5 million for BBP. As of October 27, 2026, BBP returned 40.3% over one year and XBI returned 39.3%. Over three years XBI was ahead, at 34.4% a year against 32.3%.
What is BBP's expense ratio?
BBP's expense ratio is 0.34% a year, according to its prospectus filed February 27, 2026. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, costs would come to about $35 after one year, $109 after three years, $191 after five years and $431 after ten years. That ranks it second-cheapest of eight similar funds, below the 0.44% average. Invesco Nasdaq Biotechnology ETF (IBBQ) costs less, at 0.19%.
How has BBP performed over the long term?
BBP has had strong stretches and weak ones. As of December 31, 2025, its prospectus showed an average annual return of 32.77% for one year, 8.4% for five years and 10.01% for ten years. Calendar years ranged from a 13.8% loss in 2018 to a 32.77% gain in 2025, and it also lost 8.24% in 2021. Based on price, it was up 31.2% for 2026 through October 27, which is a year-to-date figure, not a full year.
How volatile is BBP?
BBP is quite volatile. Over the three years to October 27, 2026, its annualized volatility was 25%, a measure of how widely its returns swing. Its strongest quarter was a 28.23% gain in early 2019, and its weakest was a 22.97% loss in late 2018. From February 2021 to May 2022 it fell 44.3%. Its one-year beta was 0.86, which means it moved a little less than the overall market on average. Single company events, such as a failed drug launch, can still hit individual holdings hard.