ETF Trends
ETF Trends

The biotech industry, and the exchange traded funds (ETFs) that track them have had a strong year. The SPDR S&P Biotech Fund (XBI) was up 11.2% last month, reports Joanne Von Alroth for Investor’s Business Daily. Other Biotech ETFs include iShares Nasdaq Biotechnology (IBB), up 10% over the last month; Biotech HOLDRs (BBH) with a 6% gain; and PowerShares Dynamic Biotech and Genome (PBE), also up 10%.

Pharmaceutical companies rely largely on biotech for their R&D while they search out new drugs and treatments. With all the "blockbuster" drugs going off market lately, the scurry to find new ones has begun. U.S. R&D spending last year was $23 billion, with 82% of the amount spent by similar companies around the world.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.