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.
With its positive close on Friday, IBB notched “a third consecutive weekly gain for the first time since mid-February. This would also be the best week for the ETF since the week of June 23, when it gained 9.57 percent,” according to CNBC.
Related: Why Biotechnology Investing is Looking Healthy
Investors are inching into IBB this quarter as the ETF’s third-quarter inflows, as of July 20th, were just $1.1 million. However, the ETF has added $650 million in new assets on a year-to-date basis. Each of the three largest biotechnology ETFs, including IBB, have seen inflows this year.
Other options include the ProShares UltraPro Nasdaq Biotechnology (NasdaqGM:UBIO), which takes the 3x daily performance of the Nasdaq Biotechnology Index, and the ProShares Ultra Nasdaq Biotechnology (NasdaqGM:BIB), which takes the 2x performance of the same benchmark.
For more information on the healthcare sector, visit our healthcare category.