New ETFs Could Benefit From Favorable Biotech Seasonality

The benchmarks for BBC and BBP also offered impressive out-performance. The BioShares Biotechnology Clinical Trials Index, BBC’s underlying index, outperformed IBB in six out of 10 Januarys in the early part of month while also outperforming the big biotech ETF for the entire month on six of 10 occasions.

The BioShares Biotechnology Products Index, the benchmark for BBP, is tilted more toward large-caps than BBC’s index, but still managed modest out-performance of IBB during the aforementioned time frames, according to BioShares data.

BBP’s top 10 holdings include Raptor Pharmaceuticals (NasdaqGS: RPTP), Halozyme Therapeutics (NasdaqGS: HALO) and Exelixis (NasdaqGS: EXEL). No stock accounts for more than 3.4% of the ETF’s weight.

BBC’s top 10 holdings include Auspex Pharmaceuticals (NasdaqGS: ASPX), Idera Pharmaceuticals (NasdaqGS: IDRA) and Tetraphase Pharmaceuticals (NasdaqGS: TTPH). No stock receives a weight of more than 2.84% in BBC.

BBC Top 10 Holdings

Table Courtesy: BioShares