IBB and XBI underperform benchmark indexes
The iShares Nasdaq Biotechnology ETF (IBB) and the SPDR S&P Biotech ETF (XBI) provide a similar sort of exposure to investors. IBB only picks stocks that are listed on NASDAQ while XBI picks from the NYSE and NASDAQ. IBB tracks the Nasdaq Biotechnology Index. XBI tracks the S&P Biotechnology Select Industry Index. They’re the respective benchmark indexes.
The above graph shows the performances of XBI and IBB with the respective indexes. For the week ending August 7, 2015, both IBB and XBI were outperformed by the respective indexes. IBB returned -3.62% while its benchmark index also returned -3.62%. Similarly, XBI returned -7.14% while its benchmark index returned -6.98%.
BioMarin and Alnylam underperform while Regeneron outperforms
BioMarin Pharmaceuticals (BMRN) has a weight of 2.87% and 1% in IBB and XBI, respectively. The stock fell by 8.50% for the week ending August 7, 2015. BioMarin announced its second quarter results. According to the company’s press release, it posted a net loss of $82 million on a GAAP (generally accepted accounting principles) basis. The net loss for 2Q15 widened by ~144% compared to 2Q14.
Alnylam Pharmaceuticals (ALNY) has a weight of 1.60% and 1.15% in IBB and XBI, respectively. The stock fell by 16.67% for the week ending August 7, 2015. Alnylam announced a net loss of $71.8 million for 2Q15. It disappointed Wall Street as the net loss gap widened on a YoY (year-over-year) basis. The company’s 2Q14 loss stood at $44.1 million.
On the brighter side, Regeneron Pharmaceuticals (REGN) has a weight of 7.26% and 1.19% in IBB and XBI, respectively. The stock rose 4.58% for the week ending August 7, 2015. Regeneron reported its 2Q15 results and announced a 50% rise in its revenue to $999 million—compared to $666 million for 2Q14. The GAAP-based net income stood at $195 million—compared to $96 million in 2Q14.