BIS has a bullish cousin, the ProShares Ultra Nasdaq Biotechnology (NasdaqGM: BIB). For better or worse, that product is also doing a good job of delivering twice the daily returns of IBB as highlighted by BIB’s 12.2% loss over the past week. Interestingly, traders have allocated nearly $61 million in new capital to BIB over that time. That is $61 million of the $66.9 million in assets BIB has brought in this year.
For the trader with a higher tolerance for risk and an even more bearish view of biotech stocks, be patient because Direxion, the second-largest issuer of leveraged exchange traded funds, has filed plans with the Securities and Exchange Commission to possibly introduce two triple-leveraged biotechnology ETFs.
One of those ETFs is the Direxion Daily S&P Biotech Bear 3X Shares, the triple-leveraged bearish answer to XBI. A launch date has not been set. [Triple Leveraged Biotech ETFs Coming Soon]
ProShares Ultrashort Nasdaq Biotechnology
