Top Ten of XBI Outperform by Market Cap



XBI’s top ten outperform

Going by market cap, the top ten stocks of the iShares Nasdaq Biotechnology ETF (IBB) underperformed the top ten stocks of the SPDR S&P Biotech ETF (XBI). The average return of the top ten IBB stocks was -4.73%, while the average return of top ten XBI stocks was -3.89% for the week ended September 4, 2015.

The above graph reflects the performance of IBB’s and XBI’s top ten by market cap. None of the stocks in IBB’s top ten ended up with positive returns, although few stocks are commonly held by both ETFs.

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Biomarin drags XBI, but Alkermes pulls it up

Biomarin Pharmaceuticals (BMRN) fell 5.01%, closing at $126.51 on September 4, 2015. The stock is trading below the 20-day, 50-day, and 100-day moving averages. However, according to the press release, BMRN “will present data in two oral and 19 poster presentations at the Society for the Study of Inborn Errors of Metabolism 2015 Annual Meeting which will be held on September 1-4 in Lyon, France.” BMRN has a weight of 1% in XBI and 2.87% in IBB.

On the brighter side, Alkermes (ALKS) rose 2.26%, bucking the downward trend. ALKS also went up on high trading volumes. On September 1, 2015, ~1.44 million shares were traded. The five-day average traded volumes for the week ended September 4, 2015, was ~1.1 million shares per day. The stock closed at $64.58 on September 4, trading above the 100-day moving average. ALKS has a weight of 1.30% in IBB and 0.91% in XBI.

Illumina (ILMN) fell 4.23%. ILMN announced that it has completed the acquisition of Genologics Life Science Software. However, the news didn’t excite investors, and the stock closed at $193.16 on September 4. ILMN has a weight of 4.04%.


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