ARK Genomic Revolution ETF

ARKG

Market cap $1.61B

Biotech, China, insurance and healthcare ETFs led June gains as strong earnings, AI optimism and easing geopolitical fears lifted markets.

June has been a month full of excitement in the ETF market. While commercial space and AI infrastructure attracted a significant amount of investor attention, biotechnology exposure comprises four out of the five top-performing equity ETFs as of June 29.

Biotech ETFs are surging in 2026 as a friendlier FDA, strong M&A activity and AI-driven drug discovery fuel optimism for more upside.

Biotech investors are far more selective than they were during the pandemic-era boom, JPMorgan's top EMEA healthcare investment bankers told CNBC.  Many biotech companies are now pursuing a dual-track process: preparing for an IPO while simultaneously engaging with potential acquirers.

Two of the most well-known investors are betting on the same three Magnificent Seven stocks. Here's a look at the stocks owned by both Cathie Wood and Bill Ackman.

Investors are questioning the staying power of medical technology (medtech) stocks, which have fallen from grace since the COVID-19 pandemic. The starting point is to distinguish between medtech and other healthcare industries.

After a 50%+ run from lows last April through highs in mid-January, the Biotech group has been trending sideways over the last few months. Biotech hasn't garnered much attention lately, with all the coverage of the Iran War and the AI Doom trade that's been taking down software stocks even as AI infrastructure stocks continue to surge.

ARK Genomic Revolution ETF (ARKG) maintains a "Buy" rating, driven by strong technicals and momentum despite a premium valuation. ARKG has outperformed XLV and SPY over the past year, returning 23% since July and beating the S&P 500 by 12 percentage points. The ETF's concentrated, small-cap, high-risk portfolio is supported by rising AUM, robust liquidity, and a bullish technical breakout.

Ark Invest, led by Cathie Wood, issued another "Big Ideas" list on Wednesday, sharing themes for 2026 that investors should watch. This year's list comes after the firm reported a strong 2025, with its ETFs outperforming the S&P 500.

The healthcare sector has experienced one of its most significant de-ratings in 35 years, with valuations now at a 30% discount to the broader market. Healthcare trades at historical valuation discounts across multiple metrics.