Like the drug stocks, the biotech sector was also in a shambles last fall. In fact, it was arguably in worse shape after imploding in a potential bubble top in 2015. By early 2016, the NYSE ARCA Biotechnology Index (BTK) had lost over 40% of its value. One of the few positives was that at both the early 2016 lows and the Brexit lows, the BTK had held its post-2009 Up trendline that connected the 2011 lows,” according to ETF Daily News.
ETF traders who are betting big on the biotechnology sector rebound have also utilized leveraged long options including the Direxion Daily S&P Biotech Bull Shares (NYSEArca:LABU), which takes the 3x or 300% daily performance of the S&P Biotechnology Select Industry Index.
For the week ended June 28th, investors added $877 million to IBB, making the biotechnology fund the top asset-gathering ETF over that span.
For more information on the healthcare sector, visit our healthcare category.