In the essence of simplicity, here is the potential for added upside for FBT: “In the case of the BTK, the range from the top to bottom of the cup would be roughly 600 points (4326-3728). That would target about 14% above the top of the cup here and would bring the index up into the vicinity of the 5000 level which would be a nice round number target,” according to Lyons.
With FBT currently trading just over $130, another 14% would carry the ETF to the $148 area. That for an ETF that has more than quadrupled over the past five years while being one of the top-performing ETFs since the March 2009 market bottom. [Biotech ETF Run not Over Yet, Says Analyst]
FBT holds just 30 stocks, making it one of the smallest biotech ETFs in terms of number of holdings. The fund’s constituents range in weight from 2.65% to 4.71% and include Regeneron (NasdaqGS: REGN), Gilead (NasdaqGS: GILD) and Celgene (NasdaqGS: CELG).
Chart Courtesy: J. Lyons Fund Management