However, investors are displaying reluctance to embrace biotech ETFs once again. Since the start of the second quarter, IBB, XBI, PBE and the Market Vectors Biotech ETF (NYSEArca: BBH) have lost a combined $466.3 million in assets, more than 10 times the $46 million gained by the First Trust NYSE Arca Biotechnology Index Fund (NYSEArca: FBT). FBT is the only biotech ETF to see inflows this quarter. [Vertex Lifts These Biotech ETFs]
Technicals could hold the near-term key for these ETFs.
“Should IBB succeed and climb back into its rising channel, it would be a positive bullish accomplishment for this sector,” added Kimble.
iShares Nasdaq Biotechnology ETF
Chart Courtesy: Kimble Charting Solutions