Biotechnology-related exchange traded funds are stuck in a malaise, with the underlying biotech sector declining for the ninth consecutive session, its longest selloff in a twenty years.
Since June 6, the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB), which tracks the Nasdaq Biotechnology Index, declined 10.3%.
The underlying Nasdaq Biotechnology benchmark dropped 10% since June 6 as Biogen (NasdaqGS: BIIB) dragged on the index after plunging 18% in response to a failed mid-stage trial of its experiment drug for multiple sclerosis, Bloomberg reports.
BIIB makes up 7.1% of IBB’s underlying portfolio.
The biotechnology sector has been among this year’s worst performing areas of the market as investors shifted out of high-flying growth stocks in face of increasing market uncertainties for more value plays. IBB decreased 23.5% year-to-date.
Additionally, ImmunoGen (NasdaqGS: IMGN) plunged 41% over the period to its lowest since October 2008. Infinity Pharmaceuticals (NasdaqGS: INFI) led the pullback, plummeting 73% over the period.
IBB includes 0.06% IMGN and 0.01% INFI.