For example, Amgen (NasdaqGS: AMGN), Gilead Sciences (NasdaqGS: GILD) and Celgene (NasdaqGS: CELG) combine for about a quarter of IBB’s weight.
“The withdrawal from the biotech tracker spurred an unusual phenomenon in the ETF: even as it rallied 1.2 percent on Friday, its market capitalization decreased by about $220 million. Inflows and gains in its underlying stocks sent the security’s value to $2.4 billion last week, the highest since November,” according to Bloomberg.
Investors who are closely watching the presidential race will want to keep an eye on Democratic nominee Hillary Clinton in the coming months. If Clinton makes her way to the Oval Office and implements more regulation on pharmaceutical drug pricing, biotech companies may underperform the broader market.
Related: Biotech ETFs Reeling in Longest Sector Selloff in Two Decades
That said, Republican nominee Donald Trump has also spoken out against high pharmaceuticals prices, indicating that investors need to assess whether or not biotech ETFs have put political concerns to rest before jumping into the group.
For more information on the biotech sector, visit our biotechnology category.
SPDR S&P Biotech ETF
