Destiny Wealth Partners reported in an SEC filing on Monday that it sold 59,354 shares of the iShares Biotechnology ETF (IBB) in the third quarter—an estimated $8.1 million transaction based on average pricing for the quarter.

What happened

According to a filing with the Securities and Exchange Commission on Monday, Destiny Wealth Partners reduced its holding in the iShares Biotechnology ETF (IBB) by 59,354 shares during the quarter. The estimated value of the shares sold was $8.1 million. The fund now holds 16,430 IBB shares valued at $2.4 million as of September 30.

What else to know

This sale left IBB representing 0.3% of Destiny Wealth Partners’ 13F reportable assets.

Top holdings after the filing:

• JAAA: $46.41 million (5.7% of AUM)
• VUG: $40.11 million (4.9% of AUM)
• DFLV: $32.03 million (3.9% of AUM)
• JCPB: $28.13 million (3.45% of AUM)
• AMZN: $27.70 million (3.4% of AUM)

As of Tuesday afternoon, IBB shares were priced at $149.73. The fund is up about 5% over the year.

Company overview

Company snapshot

• IBB seeks to track the investment results of a biotechnology-focused equity index, investing at least 80% of assets in component securities and economically similar investments.
• It operates as a non-diversified ETF, with periodic rebalancing to maintain index alignment.

The iShares Biotechnology ETF (IBB) offers investors access to the U.S. biotechnology sector through a passively managed fund. With over $6 billion in market capitalization, the ETF provides exposure to biotechnology companies.

Foolish take

Destiny Wealth Partners’ decision to unload roughly $8.1 million in iShares Biotechnology ETF (IBB) shares adds to a broader theme in markets this year: Institutional investors have been cooling on biotech. The sector has struggled to regain its pandemic-era momentum as investors favor AI, energy, and industrial plays. IBB is up about 5% over the past year, trailing the S&P 500’s 18% gain.

IBB’s two largest holdings—Vertex Pharmaceuticals and Amgen—have each slumped, down about 8% and 7%, respectively, over the past year. That drag has offset strength from smaller, high-growth biotech names focused on oncology and gene therapy. Meanwhile, the fund’s expense ratio of 0.44% sits slightly above broad-market ETF averages, reflecting the niche exposure investors are paying for.

For long-term investors, IBB still offers diversified exposure to the innovation pipeline driving future drug breakthroughs—but near-term returns will depend on FDA approvals, pricing clarity, and investor appetite for higher-risk growth sectors.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.

Biotechnology ETF: An ETF focused on companies in the biotechnology industry, such as drug development and medical research.

AUM (Assets Under Management): The total market value of assets that an investment manager or fund controls on behalf of clients.

13F reportable AUM: The portion of a fund’s assets that must be disclosed in quarterly SEC Form 13F filings, typically U.S. equity holdings.

Non-diversified ETF: A fund that invests in fewer securities or sectors, increasing exposure to specific industries or companies.

Index-based selection: An investment strategy where holdings are chosen to match a specific market index, rather than by active management.

Component securities: The individual stocks or assets that make up an index or ETF portfolio.

Dividend yield: The annual dividend income expressed as a percentage of the investment’s current price.

Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.

Rebalancing: Adjusting a fund’s holdings periodically to maintain alignment with its target index or asset allocation.

Exchange-traded funds (ETFs) make investing simple. With a few clicks of a button, you could quickly gain the opportunity to profit alongside a diversified collection of high-quality businesses.

In addition, select ETFs offer relatively easy ways to cash in on powerful economic trends, such as the artificial intelligence (AI) boom. Well-chosen funds could also provide you with bountiful and reliable passive income.

Read on to see why AI chip suppliers and high-yield dividend payers are particularly attractive stocks to buy today.

This ETF could help you profit from the AI revolution

The world runs on semiconductors. Laptops, smartphones, medical devices, modern cars and trucks, airplanes, satellites, and solar panels are just some of the products that require these essential components to function properly.

The microchips that underpin computer technology of all sorts are becoming even more valuable in the age of AI. The global semiconductor industry is poised to grow from $697 billion in 2025 to $1 trillion by 2030 and $2 trillion by 2040, according to Deloitte. Chip suppliers are set to see their sales and profits soar in the coming years.

The iShares Semiconductor ETF (SOXX -2.95%) offers you a convenient way to claim your share of this enormous and rapidly expanding market.

The fund is managed by BlackRock, one of the world’s largest investment companies, with assets under management of $12.5 trillion as of the end of the second quarter.

The ETF holds stakes in 30 stocks, all of which are key cogs in the global semiconductor supply chain. Leading chipmakers Nvidia, Advanced Micro Devices, Intel, Broadcom, and Taiwan Semiconductor Manufacturing stand among the fund’s largest holdings.

The ETF’s annual expense ratio is reasonable at 0.34%. That amounts to $3.40 for every $1,000 invested.

All told, the iShares Semiconductor ETF is a relatively effortless and low-cost way to position yourself to benefit from the AI-fueled chip boom.

This dividend ETF can help you build a lucrative passive income stream

Dividends are the sweet rewards of investing. A swell of cash payments pouring into your account year after year can drastically reduce your financial worries. Dividends can also help you pay for the things you enjoy.

Moreover, dividend stocks can add ballast to your diversified investment portfolio. Stocks that regularly pay out cash to their investors are generally less volatile than those that don’t. Dividend-payers also tend to outperform non-dividend-payers during bear markets. Better still, companies that can consistently grow their cash distributions often see their share prices rise in kind.

As its name suggests, the Vanguard High Dividend Yield ETF (VYM -0.09%) offers convenient access to a broad collection of income-generating stocks with above-average payouts. The fund’s annualized dividend yield of roughly 2.6% is more than twice that of the S&P 500 Index, making it an excellent source of passive income.

With positions in roughly 580 stocks across a range of sectors, the ETF also provides investors with the wealth-protecting benefits of diversification. Top holdings, which include dividend stalwarts such as JPMorgan Chase, ExxonMobil, and Walmart, further help to mitigate the risks for shareholders.

Best of all, Vanguard charges ultralow fees, so nearly all the ETF’s gains will be passed on to investors. The Vanguard High Dividend Yield ETF has an expense ratio of 0.06%, which amounts to just $0.60 per $1,000 invested annually.

JPMorgan Chase is an advertising partner of Motley Fool Money. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, JPMorgan Chase, Nvidia, Taiwan Semiconductor Manufacturing, Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF, Walmart, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.

If you’re like many investors, you either own or want to own the “Magnificent Seven” stocks, which are Apple, Amazon.com, (Google parent) Alphabet, (Facebook parent) Meta Platforms, Microsoft, Nvidia, and Tesla.

You might also want to own companies that could become Magnificent-Seven-like — in other words, terrific growth stocks. But which companies are the next great investments? It can be hard to know, which is why it’s smart to buy a bundle of promising stocks, spreading your risk and opportunity around.

Consider, therefore, investing in the Vanguard Growth ETF (VUG -0.32%), which you can do with as little as $100. (To clarify, a single share recently went for $463, so if you only had $100 to invest, you’d need to buy a fraction of a share, which some good brokerages allow you to do.) An exchange-traded fund (ETF) is a fund that trades like a stock.

Meet the Vanguard Growth ETF

The Vanguard Growth ETF tracks the CRSP U.S. Large Cap Growth Index, which is focused on large-cap companies growing at a faster-than-average clip, and the ETF aims to deliver roughly the same returns, minus its low fees. Specifically, its expense ratio (annual fee) is just 0.04%, meaning that you’ll be charged a whopping $4 per year for every $10,000 you have invested in the fund.

The ETF held 165 stocks, as of June 30, per Vanguard, with 60% of assets in the technology sector, followed by 19% in the consumer discretionary sector. Here are the top 10 holdings, which together made up about 59% of total assets:

Source: Vanguard.com, as of June 30.

You can see that all the Magnificent Seven stocks are there — and among the top holdings. And given that these 10 holdings make up more than half the ETF’s value, it’s clear that the other 155 stocks will be relatively minor holdings for the ETF — and its shareholders. Still, those top 10 companies are in the top 10 because they grew to huge sizes, and it’s not crazy to let your winners run and keep winning.

This ETF and its more well-known fellow index fund, the S&P 500 index fund, are, like lots of others, market-cap-weighted, meaning that the bigger the component company, the more influence it will wield on the index. That’s why the top 10 companies above make up so much of the Vanguard Growth ETF’s value — because they have such hefty market caps.

If you’re in the market for diversification with less concentration, you might look for a good equal-weighted ETF, such as the Invesco S&P 500 Equal Weight ETF, which holds each of its 500-some components in roughly equal proportion. The Invesco equal-weight ETF’s top-10 holdings would, therefore, make up only about 2% or 3% of the overall ETF value.

How has the Vanguard Growth ETF performed?

Here’s how the Vanguard Growth ETF would have rewarded you over several recent periods. I’ll compare its numbers to those of a low-fee S&P 500 index fund, too, and you’ll see that it outperformed the S&P index fund handily:

Source: Morningstar.com, as of August 12, 2025.

There’s no guarantee that it will always outperform, though, and it’s good to remember that since growth stocks tend to fall harder in market downturns, there may be years when it really underperforms. For example, in 2022, when the S&P 500 ETF dropped by around 18%, the Vanguard Growth ETF dropped by 33%. Ouch!

Still, long-term investors have enjoyed solid overall gains, and it’s rarely good to focus on any one year. So go ahead and consider the Vanguard Growth ETF for your growth-stock needs. But perhaps complement it with some other solid index ETFs.

Selena Maranjian has positions in Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.