If you have little money to invest, one way to minimize your risk is by purchasing a basket of biotechs using an ETF. This can often be a sound approach, as you aren't simply betting your entire investment on one biotech, which is an extremely risky prospect. An ETF spreads the risk among many biotechs, meaning you'll participate in the gains of more than one company. You'll also participate in losses of multiple companies, but an ETF will generally smooth your return and reduce volatility.