What’s interesting about biotech ETFs as stars during rising rate environments is that durability is not guaranteed to trickle down to all of the healthcare sector. During the Fed’s last tightening cycle, which ran from 2004 through 2006, the Health Care Select Sector SPDR (NYSEArca: XLV) lagged the S&P 500. [Sector ETFs for Rising Rates]
So did IBB. The ETF rose just 6.6% from the start of 2004 through the end of 2006 while the S&P 500 surged 34.5% over the same time frame. However, this is a different era for the health care sector, including the biotech industry.
On Monday, 26 healthcare ETFs touched all-time highs, nine of which were biotech funds.
iShares Nasdaq Biotechnology ETF
