Bearish plays on healthcare and biotech ETFS include the recently launched Direxion Daily S&P Biotech Bear Shares (NYSEArca: LABD) takes the -3x or -300% daily performance of the biotech sector, ProShares UltraPro Short NASDAQ Biotechnology (NasdaqGM: ZBIO) also tracks the -3x or -300% daily performance of the Nasdaq Biotechnology Index, ProShares Ultrashort Nasdaq Biotechnology (NasdaqGM: BIS) tracks the -2x or -200% daily performance of the biotech space and ProShares UltraShort Health Care (NYSEArca: RXD) follows the -2x or -200% daily performance of the broader healthcare sector.
Year-to-date, IBB and XBI, two of the three largest biotech ETF, have lost about $95 million in assets combined.
“While total net inflows of ~$20 billion between 2013 and mid-2015 helped drive strong biotech performance, we saw sustained outflows totaling ~$10.1 billion between September 2015 and YE16, contributing to biotech’s underperformance during that period. In our view, a strong biotech recovery will need to be driven in large part by specialist funds,” according to the RBC note seen in Barron’s.
For more information on the biotech sector, visit our biotechnology category.
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