IBB, which holds nearly 190 stocks and is a cap-weighted ETF, has a price-to-earnings ratio of just over 21 and a price-to-book ratio of 4.92. The ETF’s three-year standard deviation is just over 25 percent.
For example, Amgen (NasdaqGS: AMGN), Gilead Sciences (NasdaqGS: GILD) and Celgene (NasdaqGS: CELG) combine for about a quarter of IBB’s weight.
IBB’s “200-week moving average has propped up the price for most of 2016, and technical traders expect this behavior to continue for the remainder of 2016. Based on the chart, it seems as though strategic technical traders will be opening positions as close to $264.77 as possible to maximize their risk/reward,” reports Investopedia.
For more information on the biotech sector, visit our biotechnology category.
iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB)