IBB Was among the Best Biotechnology ETFs for the Week



IBB gains 2.9% for the week

The market for the week ended October 30, 2015, was flat, with the broader market representative SPDR S&P 500 ETF (SPY) gaining only 0.2%. There were talks about how the Fed might increase the interest rate during its December 2015 meeting. Also, China lowered its interest rates further by 25 basis points during the week.

Biotechnology ETFs outperformed the broader market and posted some positive gains for the week. The iShares NASDAQ Biotechnology ETF (IBB) rose by 2.9%, the Health Care Select Sector SPDR ETF (XLV) rose 2.9%, the SPDR S&P Biotech ETF (XBI) rose 1.5%, the iShares US Medical Devices ETF (IHI) rose 2.4%, and the iShares US Healthcare Providers ETF (IHF) rose 2.3% for the week ended October 30, 2015.

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The above graph reflects the performance of different ETFs compared with SPY on a week-over-week basis. Since October 9, 2015, SPY outperformed other biotechnology ETFs with a return of 6.5%. XLV outperformed other biotechnology ETFs with a return of 4.5%, while IHF was the worst performer with a return of -0.9% for the same period.

Fluidigm top performer for the week

Fluidigm (FLDM) was the top performer of the week with a return of 35.8% for the week ended October 30, 2015. The stock went up after the company announced its 3Q15 results. It posted 3Q15 revenues of $28.6 million, a 3% fall from $29.6 million in 3Q14, However, on a constant currency basis, total revenue rose by 3%. Fluidigm reported a net loss of $9.3 million for 3Q15, compared with a net loss of $13.8 million in 3Q14. The company projects total revenue to be in the range of $111 million to $114 million, versus the prior guidance of $110 million to $115 million for 2015.

It appears that the reduction in the net loss excited investors, and the stock zoomed up. Fluidigm has a weight of 0.12% in the iShares US Medical Devices ETF.

The other top performers for the week were Heron Therapeutics (HRTX), AbbVie (ABBV), and Agios Pharmaceuticals (AGIO), which returned 26.8%, 18.3%, and 18.1%, respectively.


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