The BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC),which also debuted in December, has a 2.3% weight to Bluebird making the stock the ETF’s ninth-largest holding. BBC has climbed almost 29% this year.
The ETF’s underlying index excludes large pharmaceuticals companies as well as medical devices and diagnostics; life science tools; specialty pharmaceuticals, generic drugs and outsourced drug delivery; healthcare services; contract research organizations; neutraceuticals; agricultural biotechnology; animal health; diversified healthcare; food sciences; information technology; and nanotechnology firms. [Interesting Biotech ETFs on the Way]
The SPDR S&P Biotech ETF (NYSEArca: XBI), the third-largest biotech ETF by assets, has a 1.52% weight to Bluebird, making the stock the ETF’s sixth-largest holding. That may not sound like much, but consider XBI’s past performances on days when some of its holdings (the ETF is equal-weight fund) have surged.
For example, on a single day in July 2014, XBI climbed 6% after shares of Puma Biotechnology (NYSE: PBYI) nearly quadrupled after the company said its experimental breast cancer treatment, neratinib, proved successful in a Phase III trial. Puma was just 1.37% of XBI’s weight entering that particular trading day. On Jan. 9, 2014, XBI soared 7% after Intercept Pharmaceuticals (NasdaqGM: ICPT) nearly quadrupled as well after trials for the company’s liver disease treatment proved successful. Intercept was just 1.61% of XBI’s weight entering that day. [Intercept Lifts This ETF]
ALPS Medical Breakthroughs ETF
