Biotechs have been hammered in recent sessions although the largest ETF in the space in terms of assets under management ($3.7 billion) IBB (iShares Nasdaq Biotechnology, Expense Ratio 0.48%) is staging a bit
of a comeback early this morning ($198 handle after trading as low as $191.29 just yesterday). Trading volume has been absolutely off the wall this week as well, with back to back 2-4+ million share days.
IBB has also seen north of $250 million leave the fund in terms of net outflows (asset base is $3.7 billion currently) and top holding AMGN (8.07%) has sold off rather viciously as of late. AMGN is slated to report quarterly
earnings on 10/22, and other top holdings like CELG (7.78%) and GILD (7.73%) are scheduled to release their numbers later this month as well (10/24 and 10/29 respectively).
With IBB head to head crushing the S&P 500 Index not only year to date, but over the trailing one and five year periods in terms of returns, it is not particularly surprising to see some profit taking here given the recent tenuous feel in the equity markets.
Other Biotech Equity focused ETPs that should be monitored today include XBI (SPDR S&P Biotech, Expense Ratio 0.35%), FBT (First Trust AMEX Biotechnology, Expense Ratio 0.60%), BBH (Market Vectors Biotech, Expense Ratio 0.35%), PBE (PowerShares Dynamic Biotechnology, Expense Ratio 0.60%).
For leveraged short term trading opportunities, BIB (ProShares Ultra Nasdaq Biotechnology, Expense Ratio 0.95%) and BIS (ProShares UltraShort Nasdaq Biotechnology, Expense Ratio 0.95%).
Outside of IBB, we have not seen any evidence of notable inflows nor outflows in any of the other aforementioned ETF names, but heading into the near term earnings season for the Biotechs, we could see an expansion of trading activity throughout this
space.
iShares Nasdaq Biotechnology ETF
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.
Street One Financial is an educational/research firm utilizing the Broker Dealer services of GWM Group Inc (RLCC) a FINRA registered Broker/Dealer. All trades are executed through GWM Group (RLCC) and cleared by Fidelity (NFS)DTC number 0226. Street One Financial LLC makes available products and services offered by GWM Group Inc., a registered broker-dealer and Member Securities Investor Protection Corporation (SIPC), Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.