Allergan Drives the Performance of XLV’s Top Ten Holdings



XLV’s top ten holdings outperform

According to weight, the Health Care Select Sector SPDR ETF’s (XLV) top ten holdings outperformed those of other biotechnology ETFs. While XLV’s top ten gave a return of 4.1%, the iShares NASDAQ Biotechnology ETF’s (IBB) returned 3.6%, the SPDR S&P Biotech ETF’s (XBI) returned -0.6%, the iShares US Medical Devices ETF’s (IHI) returned 3.6%, and the iShares US Healthcare Providers ETF’s (IHF) returned 3.5%. XLV’s top ten were the top performers and XBI’s top ten were the worst performers for the week ended October 30, 2015.

The above graph reflects the performances of the top ten holdings of different biotechnology ETFs in comparison with the SPDR S&P 500 ETF (SPY) for the week ended October 30, 2015.

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Allergan gained 14.9% for the week

Allergan (AGN) gained 14.9% for the week ended October 30, 2015. The company’s stocks gained on the news of a possible merger with Pfizer (PFE). This merger is considered the biggest deal of 2015 and was valued at more than $100 billion. Allergan’s stock closed at $308.47 and was trading above its 20-, 50-, and 100-day moving averages. AGN’s RSI (relative strength index) stood at 65, indicating that the stock is neither oversold nor overbought. With its current price, the stock is trading at a PVB (price-to-book value ratio) of 1.8x. Allergan has a weight of 4.7% in XLV’s portfolio.

Other stocks that performed well in the top ten holdings include Mylan (MYL), and Incyte (INCY), which gave returns of 7.7% and 6.9%, respectively.


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