How to Invest in Gene Stocks and ETFs
Genetics is the study of genes, their variations and hereditary characteristics, as well as how these traits are passed on through generations. So what is genetics investing?
When it comes to genetics investing, companies in this niche of the life science sector are mostly focused on four submarkets: DNA sequencing, genetic testing, gene therapy and genomics, which includes gene editing.
This life sciences submarket has gained much attention from investors over the past several years. It has provided a launching pad for a number of biotech firms developing and commercializing novel treatments and drugs addressing a wide range of diseases with unmet needs.
For those looking to dive into the genetics sector, there are numerous investment opportunities to consider. Investing in gene stocks is the most common route, but there are risks due to the market’s volatility, especially when it comes to wins or losses with the US Food and Drug Administration (FDA).
Exchange-traded funds (ETFs) are another popular option for gaining exposure to the industry, and come with less risk than investing in a single stock.
Here the Investing News Network provides a breakdown of the genetics industry, what trends are shaping this market, and the options for investing in gene stocks and ETFs.
What are the key areas of the genetics sector?
Before diving into investment opportunities in the genetics market, it’s important to understand the industry and the key areas of genetics mentioned above.
- DNA sequencing: DNA sequencing involves determining the order of the four “bases” that make up DNA molecules. These chemical building blocks are adenine, guanine, cytosine and thymine. Determining their sequence allows scientists to understand what type of genetic information a section of DNA holds and whether there are disease-causing changes to the genes.
- Genetic testing: Genetic testing is the analysis of human DNA, RNA, chromosomes, proteins and more in order to detect mutations and variations linked to inheritable diseases. There are thousands of genetic tests available that largely fall into the categories of molecular genetic tests, chromosomal genetic tests and biochemical genetic tests.
- Gene therapy: Gene therapy is an approach that uses a person’s genes to treat or prevent diseases. There are several different types of gene therapy, such as editing a mutated, disease-causing gene into a healthy version of the gene, turning off a mutated gene that isn’t working properly and even introducing a new gene into the body to fight off diseases.
- Genomics: Genomics is the overarching study of the genome, or all of a person’s genes. The field includes how those genes interact both with one another and with a person’s environment. Gene editing purposefully alters the DNA sequencing of a living cell.
What investors should know about the genetics market
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