Given the drubbing that Biotech stocks have had in the past several sessions (and recall that it was last April in 2014 and predicated near curious comments from Chairwoman Yellen in regards to the sector being potentially overvalued actually that caused a similar sell-off in the sector) we are surprised that outflows have not been heavier in the space via ETFs.
The largest ETF here, IBB (iShares NASDAQ Biotechnology, Expense Ratio 0.48%) has “only” seen $75 million flow out via redemption activity in the month of April which is notionally small given the $8.1 billion asset base in the fund.
Other top entries in the space in terms of asset size like FBT (First Trust NYSE Arca Biotechnology, Expense Ratio 0.60%), have actually pulled in new assets (>$130 million in) in the month of April on weakness, while XBI (SPDR S&P Biotech, Expense Ratio 0.35%) actually has seen some heavier outflows, with more than $165 million leaving that particular fund.
Interestingly, one of the larger Biotech equity funds in terms of asset size, the fourth largest fund in fact in the space, is BIB (ProShares
Ultra NASDAQ Biotechnology, Expense Ratio 0.95%) which has about $833 million in AUM and has net attracted assets in the month of April in spite of the recent shake out.
With Biotechs suffering yet again today, with IBB for instance trading below its 50 day MA for the third straight trading session and for the first time in any sustained manner since in recent recollection, it would be surprising to not see heavier outflows in this space particularly if the market itself continues to stall out and holders in the space get nervous trigger fingers.
This said, BIS (ProShares UltraShort NASDAQ Biotechnology, Expense Ratio 0.95%) should probably be a larger fund in terms of asset size (only $115 million in AUM at the moment) and the fund has only seen modest inflows in the month of April (about $16 million in).