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IBB and XBI’s Top 10 Large-Cap Stocks Underperform

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IBB and XBI’s top ten stocks fell

Going by the market cap, the top ten large-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) fell the most with a return of -3.6%. The SPDR S&P Biotechnology ETF (XBI) fell by 3.4%. In contrast, the Health Care Select Sector SPDR ETF (XLV) fell by 2.2% as of October 6, 2015.

The above graph shows the performance of the top ten large-cap stocks of IBB, XLV, and XBI. XLV outperformed IBB and XBI. However, for the trailing five-day period, XBI outperformed IBB and XLV with a return of 5%

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Few stocks that lost the most among top ten

Illumina (ILMN) was the biggest loser in IBB’s top ten stocks. It had a return of -10.6% on October 6, 2015. The stock fell as it announced an estimated third-quarter revenue of ~$550 million. According to management, the instrument sales in the desktop family didn’t reach the expected level. Also, the sales in Europe and the Asia-Pacific region continued to show weakness. On a trailing five-day basis, the stock fell 14.1%. Illumina has a weight of 3.6% in IBB’s portfolio.

Bristol-Myers Squibb (BMY) was the biggest loser among XLV’s top ten stocks on October 6, 2015. It fell by 3.4%. According to the SEC’s (U.S. Securities Exchange Commission) press release, “Bristol-Myers Squibb has agreed to settle charges that its joint venture in China made cash payments and provided other benefits to health care providers at state-owned and state-controlled hospitals in exchange for prescription sales. Bristol-Myers Squibb will pay more than $14 million to settle the SEC’s finding that it violated the Foreign Corrupt Practices Act (or FCPA) and reaped more than $11 million in profits from its misconduct.” Bristol-Myers Squibb has a weight of 4% in XLV’s portfolio.

Incyte (INCY) was the biggest loser in XBI’s top ten stocks. It fell by 6.9% due to profit-booking on October 6, 2015. The trading volumes were high. It traded ~7.2 million shares for the day. Incyte closed at $112.46. It was still trading above the 100-day moving average. It has a weight of 1.1% in XBI’s portfolio.

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