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%.
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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.
[related_stories]Biotech ETFs that track smaller biotech companies also got the worst of the selling. Since June 6, the BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC), which tracks potential up-and-coming biotechnology companies that are in the clinical trials stage, fell 14.4%. The ALPS Medical Breakthroughs ETF (NYSEArca: SBIO), which focuses on small- and mid-cap companies that have one or more drugs in either Phase II or Phase III U.S. FDA clinical trials, declined 12.2%.
BBC includes a 1.3% in IMGN. SBIO holds 0.07% in INFI.
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Meanwhile, other segments of the healthcare industry have held up over the same period. For instance, the iShares U.S. Healthcare Providers ETF (NYSEArca: IHF), which follows companies that provide health insurance, diagnostics and specialized treatments, dipped 0.6% and the broader First Trust Health Care AlphaDEX Fund (NYSEArca: FXH), which tracks a smart-beta health care sector indexing methodology, dropped 1.0%.
For more information on the biotech sector, visit our biotechnology category.
iShares Nasdaq Biotechnology ETF