XBI’s large-cap stocks underperformed the fund
The large-cap stocks of the SPDR S&P Biotechnology ETF (XBI) underperformed XBI itself with an average return of 2.8% as compared to XBI’s return of 6.5%. However, the large-cap stocks outperformed the broader market SPDR S&P 500 ETF (SPY), which gave a return of 1.2% as of November 2, 2015. The combined weight of XBI’s 12 large caps stood at ~13.1% of the ETF’s portfolio. The large-cap holdings of XBI include Vertex Pharmaceuticals (VRTX), Alexion Pharmaceuticals (ALXN), and Celgene (CELG), which gave returns of 1.8%, 2.7%, and 3.7%, respectively. Out of the 12 stocks, 11 stocks ended positively while one stock went down marginally.
The above graph reflects the performance of the large-cap holdings of XBI in comparison to XBI and SPY on a day-to-day basis since October 26, 2015. During this period, XBI’s large-cap stocks have outperformed XBI and SPY with a return of 9.2% as compared to XBI’s return of 8.1% and SPY’s return of 1.4%.
AbbVie was the top performer among large caps
AbbVie (ABBV) rose 6.5% on November 2, 2015. ABBV continued its strong run and has now gained for seven consecutive trading sessions. ABBV closed at $63.38 and surpassed its 100-day moving average price of $63.26. The stock rose as ABBV announced that it will present at Credit Suisse’s 24th Annual Healthcare Conference to be held on November 11, 2015. ABBV has a weight of 1.5% in XBI’s portfolio. At its current price, ABBV is trading at a price-to-book value of 19.06x.