Although the third quarter of this year was one of the more downbeat ones, there are still some exchange traded funds (ETFs) that managed to post gains amid the wreckage.
Doug Rogers for Investor’s Business Daily reports that these funds are doing well because investors actually like their holdings.
Biotechnology seemed to stand up to the downturn in the highly volatile third quarter, as potential blockbuster drugs and multibillion dollar buyout bids gave the big players a steady footing, the Associated Press reports. While the Dow ended the third quarter down 5%, many of the large-cap biotech stocks stood firm. The American Stock Exchange’s biotech index gained 6.3%.
Today, Eli Lilly agreed to buy ImClone for more than $6 billion, reports Tom Murphy for the Associated Press. The move would created a “true oncology powerhouse,” according to Lilly’s CEO, as the two companies combine cancer drugs and resources.
Biotechnology funds today, however, are down sharply and seemingly unable to resist the drag coming from the broader market.
Here are some of the survivors:
- SPDR S&P Biotech (XBI): up 4.4% in the third quarter; down 7.2% year-to-date; ImClone is 5.9%
- iShares NASDAQ Biotechnology (IBB): up 4.9% in the third quarter; down 10.2% year-to-date; ImClone is 1.4%
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.