Related: Hit The Lab With These 17 Biotech ETFs
Biotechnology ETFs should also prove immune to hawkish changes in Fed policy. A recent study by Deutsche Bank indicates major biotech indexes have negative correlations to changes in 20-year U.S. government bonds. Looking ahead, in the years through 2024, spending growth is projected to average 5.8% and peak at 6.3% in 2020.
“So how high can biotech go? Keene points to the IBB’s weekly chart for an answer. With the 100-week moving average crossing the 50-week moving average at $320, he believes that $320 is where IBB can sit by year’s end. That would represent an 11 percent rally from Wednesday’s closing price,” reports CNBC.
For more information on the biotech sector, visit our biotechnology category.
iShares Nasdaq Biotechnology ETF
