XBI’s Top Ten Small-Cap Stocks Perform on Par with Large-Caps



XBI’s small-cap stocks mirror large-cap performance

In the small-cap space, the top ten stocks of the SPDR S&P Biotech ETF (XBI) gave an average return of -12.18% for the week ended September 25, 2015. This is similar to XBI’s top ten large-cap stocks that returned -12.15% for the same week.

Most of the time, small-caps are more vulnerable when there’s a market sell-off, but XBI’s small-cap stocks were able to go along with the trend and didn’t shed more. In fact, they outperformed the fund itself, which returned -15.03%. Of the ten stocks, nine stocks were down, and one stock ended up in the positive.

The above graph reflects the performance of the top ten small-cap stocks on a week-over-week basis. The top ten small-cap stocks have outperformed the top ten large-cap stocks and underperformed the top ten mid-cap stocks since September 4, 2015.

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Kythera Biopharmaceuticals outperforms

Kythera Biopharmaceuticals (KYTH) rose 0.01% for the week ended September 25. It outperformed XBI and the SPDR S&P 500 ETF (SPY), which had returns of -15.03% and -1.27%, respectively.

In a September 22, 2015, Kythera press release, the company announced it has “submitted an Investigational New Drug Application ([or]IND) to the U.S. Food and Drug Administration ([or] FDA) for KYTH-105 (setipiprant) for treatment of androgenetic alopecia ([or]AGA), or male pattern hair loss.” KYTH has a weight of 1.26% in XBI’s portfolio.

In the small-cap space, Prothena (PRTA) was the biggest loser last week with a return of -20.72%. PRTA closed at $51.12 and was trading below the 20-day, 50-day, and 100-day moving averages. PRTA presented at the Ladenburg Thalmann 2015 Healthcare Conference in New York on September 29, 2015.

If investors want to invest in these stocks indirectly, they can invest through XBI, which also has stocks such as Dyax (DYAX), Acadia Pharmaceuticals (ACAD), and Puma Biotechnology (PBYI). These stocks returned -18.61%, -21.19%, and -19.96%, respectively.


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