XBI’s small-cap stocks rose handsomely
The small-cap stocks of the SPDR S&P Biotechnology ETF (XBI) outperformed with returns of 7.0% compared with XBI’s return of 2.8% and the SPDR S&P 500 ETF’s (SPY) return of 1.2% on November 2, 2015. XBI has the highest exposure to small caps, which account for 60% of XBI’s portfolio. XBI’s small-cap holdings include stocks like Achillion Pharmaceuticals (ACHN), ZioPharm Oncology (ZIOP), and Ironwood Pharmaceuticals (IRWD), which gave returns of 11%, 7.6%, and 0.70% respectively. Out of 63 small-cap stocks, only one stock ended in the red, which is indicative of the strong performance across the small-cap space.
The graph reflects the performance of XBI’s small-cap holdings in comparison with XBI and SPY on a day-to-day basis since October 26, 2015. During this period, XBI small-cap stocks outperformed XBI and SPY with returns of 8.2%, 8.1%, and 1.4%, respectively.
Arena rose 14%
Arena Pharmaceuticals (ARNA) rose 14% on November 2, 2015. The stock went up on high trading volumes with ~4.7 million shares being traded as against the five-day average trading volume of 4.4 million shares per day. ARNA announced that “six posters regarding lorcaserin HCl data will be presented during ObesityWeekSM. Hosted by the Obesity Society and the American Society for Metabolic and Bariatric Surgery, the meeting is taking place November 2-6, 2015, in Los Angeles, California.”
ARNA closed at $2.16 and was trading below its 20-day, 50-day, and 100-day moving averages. ARNA’s YTD (year-to-date) returns stood at about -38%. ARNA has a weight of 0.8% in XBI’s portfolio.