In 2003, the Human Genome Project successfully sequenced the full genetic code of a single human being at a cost of about $3 billion. That scientific triumph has offered human beings the opportunity to get to know themselves better. Since then, scientists have discovered genes that purportedly drive human frailties ranging from illness to addiction. One wonders if nurture really has much to do with anything anymore.

The latest advance in gene sequencing will likely add further fuel to the debate regarding nature versus nurture. Life Technologies (NSDQ: LIFE) announced that it has developed a new gene sequencing machine called the Ion Proton Sequencer, which can decode an entire human genome is less than a day for only $1,000. That’s a huge breakthrough, as prior sequencers required a week to accomplish the same feat at a cost of $10,000.

This latest sequencer has the potential to radically change the face of medicine.

For example, the ability to cheaply and efficiently sequence genes could lead to improvements in cancer treatment. Instead of a broad-based approach, oncologists could tailor their treatment to a patient’s genetic makeup. And biotech companies could develop tests to determine precisely what type of cancer a patient has.

Additionally, this advance could also allow doctors to identify genetic diseases in patients, ensuring that they receive the proper treatments in a timely manner, and even help determine the origins of infectious diseases. It will also be a huge boon for the pharmaceutical industry by enabling drug companies to develop more targeted and effective medications for all manner of disorders and illnesses.

Cheap and easy genetic sequencing could also have applications in the agricultural arena, allowing companies to improve livestock and develop better seed for a wide range of crops.

However, none of these advances are going to happen overnight. The first three Ion Proton Sequencers won’t be delivered until the end of this month, and there’s still substantial work to be done to validate the technology and ensure the machines are reliably accurate. Nevertheless, it’s a game-changing technology.

But from an investment standpoint, this is a tough trend to play. That’s because the lengthy and expensive drug approval process makes it difficult to determine which companies will be the first to successfully bring new treatments to market.

So instead of the risk of selecting individual stocks, it makes more sense for investors to identify a sector that will benefit the most from such advances. That makes iShares NASDAQ Biotechnology (NSDQ: IBB) particularly attractive.

The exchange-traded fund (ETF) holds a basket of 120 companies involved in biotechnology, including Life Technologies. Its portfolio allocates 60 percent of assets to pure biotechnology plays and about 40 percent of assets to pharmaceuticals. That diversified approach is an excellent way to invest in this extraordinarily volatile space. It is also offers exposure to a broad array of potential innovations in the sector rather than banking on the success of a single firm or product.

iShares NASDAQ Biotechnology’s portfolio covers all market capitalizations, with small caps, midcaps and large caps each accounting for about a third of assets. Large-caps stocks provide some ballast, while small caps expose the fund to riskier early-stage innovators.

But an investment in biotech isn’t for the faint of heart. The ETF’s chart is not entirely dissimilar to a topographical rendering of the Himalayas. Still, it’s an innovative space that will continue to develop disruptive technologies.

What’s New

No new ETFs were launched last week.