Aggressive traders willing to bet on more downside for biotech ETFs can consider the following leveraged funds: The Direxion Daily S&P Biotech Bear Shares (NYSEArca: LABD), ProShares UltraPro Short NASDAQ Biotechnology (NasdaqGM: ZBIO) and the ProShares Ultrashort Nasdaq Biotechnology (NasdaqGM: BIS). BIS and ZBIO track the same index as IBB.
The improved outlook for the health care industry comes as many expect continued growth in the sector, despite an ongoing so-called earnings recession in the S&P 500. While FactSet anticipates the broad S&P 500 to show an earnings decline of -9.1% for Q1 2016, the health care sector is expected to report revenue growth of 8.9%.
“Stifel Nicolaus portfolio manager Chad Morganlander points out that investors can’t ignore biotech’s big companies, as opportunities are starting to present themselves. Looking at the biggest names in the group, Morganlander believes that Amgen is still a safe bet,” according to CNBC.
Amgen (NasdaqGS: AMGN) is one of IBB’s largest holdings.
For more news on Biotech ETFs, visit our Biotech category.
iShares Nasdaq Biotechnology ETF