Big Biotech ETF Bounce Looks for More Upside

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.

Related: Biotech ETFs Could Heat Up Thanks to Republican-Led Congress

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.