Gven the lofty year-to-year returns, some are growing cautious over the biotech sector. Some argue that the high valuations in the biotech sector have been supported by a low interest rate environment. However, with the Federal Reserve eying an interest rate hike, biotechs may be more vulnerable ahead.
In what is a troubling sign for IBB in the near-term, the ETF is off almost 2% over the past four months despite each of its top four holdings trading higher over that period. Amgen, Celgen and Regeneron have each posted gains of roughly 9% over that span.
iShares Nasdaq Biotechnology ETF