“Biotech is an obvious example of the momentum trade. It is a high ‘beta’ or risky industry that has been a strong relative performer for many years. Through the close of the week ended March 20, the Nasdaq Biotech Index had surged 20% year-to-date. The following week, despite a relatively modest pullback in stocks, the Nasdaq Biotech Index fell roughly 5%,” said BlackRock Chief Investment Strategist Russ Koesterich in a recent note.
IBB fell 6.3% from March20 through March 31, meaning the ETF would need to fall another 3.7% to meet the standards of an official correction. Investors poured almost $539 million into the ETF during the first quarter. [A Bold Call on Biotech ETFs]
iShares Nasdaq Biotechnology ETF
Chart Courtesy: Kimble Charting Solutions
