Biotechnology stocks remain one of worst performing areas that are still stuck in a bear market after failing to recuperate earlier losses in the year, along with the broader market. However, exchange traded fund (ETF) investors still believe in a rebound.

The iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB), the largest biotech ETF by assets, declined 17.0% year-to-date and decreased 22.2% over the past year. Meanwhile, IBB has attracted $152.5 in net inflows year-to-date, according to

“Biotechs took such a beating that it still needs to catch up,” David Fajardo, Senior Vice President of Direxion Investments, told ETF Trends in a call.

Biotechnology has finally stumbled as outperforming growth stocks took a hit earlier this year. The sector has previously been outperforming during the bull market rally, with IBB showing an average annual return of 21.9% over the past five years, compared to the S&P 500’s return of 5.4%.

“Many were thinking it was overbought, but now many think it is oversold,” Fajardo added.

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