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IBB’s Small-Cap Stocks Outperform Large-Cap and Mid-Cap Stocks

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Sep. 30 2015, Updated 9:08 a.m. ET

IBB’s top ten small-cap stocks return 2.68%

By market cap, the top ten small-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) outperformed the top ten large-cap stocks and the top ten mid-cap stocks with an average return of 2.68% for the period ended September 18, 2015. The small-cap stocks also outperformed IBB and the SPDR S&P 500 ETF (SPY). The combined weights of the top ten small caps stood at 2.19% of IBB’s portfolio.

The above graph reflects the performance comparison of IBB’s top ten large-cap, mid-cap, and small-cap stocks for the period September 18, 2015.

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Which small-cap stocks excelled?

Prothena (PRTA) gained 7.52% on good trading volumes. On September 18, 2015, ~600,000 shares were traded, and the average five-day trading volume for the week was ~287,000 shares. The stock closed at $64.48 and was trading above its 20-day, 50-day, and 100-day moving averages. PRTA has an RSI (relative strength index) of 61, indicating the stock is neither overbought nor oversold. PRTA has a weight of 0.18% in IBB’s portfolio.

Cempra (CEMP) gained 9.18%, as the FDA (U.S. Food and Drug Administration) granted its “qualified infectious disease” product designation to Taksta, which will enable CEMP to fast track its development. Taksta is an oral tablet that can cure acute bacterial skin infections. The stock closed at $38.40 and was trading above its 20-day, 50-day, and 100-day moving averages. The stock has a weight of 0.23% in IBB’s portfolio.

If investors want to invest in these health care stocks indirectly, they can invest through IBB. The ETF holds stocks like Vertex Pharmaceuticals (VRTX), Amgen (AMGN), Celgene (CELG), and other major biotech stocks.

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